Cardano steps closer to being decentralized with the Shelley upgrade offering staking rewards with returns of 4.56% per year. However, the hype around the token is slowly fading and ADA is approaching exhaustion as we are about to read more in the upcoming Cardano ADA news.
Cardano’s Shelley mainnet attracted more than 856 stake pool operators in the past week but the retail investors lost the excitement around ADA because of the lackluster price action. If the trend continues, the price of the cryptocurrency could pullback based on the technical metrics.
Cardano transitioned to a proof-of-stake after the successful launch of the Shelley upgrade but many crypto enthusiasts showed interest in the staking rewards as different fundamental and technical metrics suggested that ADA is bound for a retracement. Cardano launched the Shelley mainnet last week and introduced staking rewards for all ADA holders. Hundreds of stake pools have joined since the network helped to make it more decentralized according to Charles Hoskinson, the head of IOHK.
The smart contracts protocol is getting closer to equilibrium as it has 856 stake pools in operation out of the 1000 stake pools that are needed to reach a milestone. The development team behind ADA is preparing for the next upgrade Voltaire. The next step in the roadmap is to introduce a governance system to foster development on top of the protocol as the co-founder of ETH expects that thousands of developers across the world will flock to the blockchain and will create decentralized applications:
“This time next year, I predict there will be hundreds of assets running on Cardano, thousands of DApps, tons of interesting projects, and lots of unique use and utility. 2021 is going to be so much fun watching Cardano grow and evolve. The community is definitely ready to innovate.”
While the founder of Cardano remained optimistic about the future, the hype around the altcoin faded dramatically over the past month. The social volume index shows that the number of ADA-related mentions on different social media networks as the fundamental metrics dropped from 268 to a low of 12. The drop in social activity around Cardano can be seen as an indicator of falling prices as Cardano steps into decentralization further. The TD sequential indicator added credence to the bearish outlook and this technical index presented a selling signal on ADA’s weekly charts in the form of a green nine candlestick.
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