Cardano price has remained in a tight range in the past few weeks. ADA was trading at $0.67 on Wednesday, a range it has been stuck at in the past few days. It has dropped by almost 50% from its highest level in December. So, can the ADA price jump to $2 as the chain and app fees retreat?
Cardano Fees Have Slipped
Cardano, a popular layer-1 blockchain, is not doing well as its ecosystem remains under intense pressure. Data shows that the network’s fees have continued to fall in the past few months. Its fees slumped to $316k in March from $330k a month earlier.
The fees have been in a steady downtrend after hitting a high of $977k in December last year when its ecosystem was booming. This decline in fees is a sign that the network activity is slowing.
More data show that the app revenue on Cardano has crashed. All dApps on the Cardano ecosystem made just $26,000 in March, much lower than the $400k they made in December last year.
The app revenue dropped as most networks experienced capital flight during the month. Minswap’s assets dropped by 20% to $81 million, while Liqwid, Indigo, Splash Protocol, and Lenfi lost over 40% of their assets.
The low Cardano app fees are a sharp contrast to what other chains are making. For example, Base, the layer-2 network by Coinbase, made over $20 million in March. Sonic, a relatively new chain that rebranded from Fantom, made over $200k during the month.
Cardano has one of the weakest application ecosystems among large layer-1 networks like Solana and BNB. This performance has led many in the crypto industry to call Cardano a ghost chain.
Cardano Price Prediction
There are chances that the ADA price will surge to $2 despite its weak fundamentals because the weekly chart shows that the Cardano price is stuck in the second bearish phase of the Elliot Wave pattern, which is usually characterized by a pullback.
After this, Cardano will move to the third phase, which is usually bullish and the longest phase. In this case, it will likely jump and hit $2, which coincides with the 38.2% Fibonacci Retracement level. This target is about 190% above the current trading level.
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