Cardano's Wallet Activity Declines Amid Market Uncertainty

According to U.Today, Cardano (ADA) has seen a decrease in wallet activity, raising questions about the factors influencing this trend and its potential impact on the cryptocurrency's future. On-chain analytics firm Santiment recently compared the number of non-empty wallets of top-cap assets, revealing that Cardano is one of the few networks to experience a drop in active wallets. Over the past three months, non-empty wallets have decreased by 0.1%, while Dogecoin and Bitcoin have seen increases of 13.8% and 2.6% respectively. In addition to wallet activity, Cardano's market performance has also been struggling. The cryptocurrency has seen a 28.7% price drop in the last 30 days, according to CoinGecko data, although it is still up by 17.8% on a yearly basis. Cardano's ranking has slipped, now sitting in the 10th spot behind Dogecoin and Toncoin. At the time of writing, ADA was showing signs of recovery after falling to lows of $0.445 in the previous trading session. ADA is currently up 2.2% in the last 24 hours to $0.4697. The decrease in wallet activity could be a warning sign of declining interest in Cardano, or it could signal an undervaluation opportunity. It's important to consider the broader context, as the entire crypto market is currently facing uncertainty and fluctuations in user activity are not uncommon. Periods of decline and consolidation often precede periods of renewed development and expansion as projects adjust to changing market conditions. Despite the current underperformance, historical data suggests that ADA could see a breakout, potentially reaching new highs. In an early April post, crypto analyst Ali noted that nothing has changed for Cardano, which is currently stabilizing before a breakthrough. If Cardano continues to follow the pattern observed from 2018 to 2021, ADA might jump to $1.70, paving the way for a breakout to $5.