Cardano's Price Rally Not Backed by On-Chain Activity
Cardano's trading volume on its decentralized exchanges (DEXs) has plummeted by 51% since October 1, despite a 6.29% increase in its price to $0.2597. The sharp decline in trading volume, which dropped from $11.74 million to $5.72 million, has raised questions about the authenticity of the price rally.
The price of ADA has been on the rise for the past month, with a 23.68% increase, but the trading volume on its DEXs has been steadily declining. This has led to a situation where the price movement is not being driven by on-chain activity, but rather by external factors.
The x402 payment standard, which was announced on September 21, has been cited as a reason for ADA's price increase. However, the technical precondition for x402 integration has been in place since September 9, and the actual implementation is still unknown. Additionally, the code for x402 integration is more advanced than its public documentation suggests.