The number of transactions on the Cardano network spiked to 140,000 amid the release of another major DeFi project on the network. Previously, U.Today had already reported the spike in Cardano's TVL.
The reason behind the transaction number spike
The spike in the number of transactions is most likely tied to the release of the Minswap DeFi platform that has already flipped SundaeSwap DEX in terms of the total value locked in the contract.
After the release, the TVL on the network reached $221 and was certainly followed by an increased number of transactions on the network.
Network transactions as one of the main fundamental metrics
Though the number of transactions on the network may fluctuate based on hundreds of factors like network downtimes, issues with on-chain solutions, etc. But there is no other way to determine if the network has a fundamental value behind it without tracking the number of transactions and active wallets.
ADA price performance
Despite the strong correction of the asset's price, it still trades above the pre-pump rangebound. Unfortunately, ADA's YTD performance has also become negative despite the sharp recovery in January, when Cardano's native token reached the 200-day moving average resistance.
In the long term, ADA remains in the sharp downtrend formed since September 2021 after the "smart-contract rally" tied to the release of the new technology on the network, which allowed the creation of DeFi solutions like SundaeSwap and Minswap.
At press time, ADA trades at $0.8 after another unsuccessful attempt to break through the first resistance line, which means that the asset will remain in the downtrend movement in the short-term.