Cardano's ADA Token Plummets Amid Weak On-Chain Activity

Cardano's ADA token has taken a hit, its price falling to $0.16 after a 2.14% drop in 24 hours and a 23% decrease in trading volume. This decline comes as on-chain activity remains weak, with daily transactions dropping to around 21,700 from their peak of 57,000.

Active addresses have remained relatively stable, indicating low-value engagement on the network. Despite this, large investors or 'whales' continue to dominate trading and have been net sellers, adding downward pressure on ADA's price.

The Cardano network hopes to boost interest through a treasury increase from 350 million to 500 million ADA to fund development. However, success will depend on reviving on-chain activity and attracting more protocols to the platform.