Cardano, the hot swap function, and its impact on the future of ADA

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  • Car­dano has con­tin­ued its efforts to improve trans­ac­tions via its net­work with ongo­ing upgrades
  • Despite some advance­ment, its devel­op­ment activ­i­ty tanked as ADA faced con­sol­i­da­tion, con­sid­er­ing its cur­rent sentiment

Accord­ing to Cardano’s [ADA] week­ly devel­op­ment update on 18 Novem­ber, there was an advance­ment in its hot swap fea­ture. For con­text, the hot swap func­tions as its frame­work for peer-to-peer (P2P) adoption. 

The Car­dano team, while updat­ing the com­mu­ni­ty on its efforts, not­ed that the frame­work was cru­cial for test­ing its com­po­nents. In addi­tion, there were efforts to inte­grate seri­al­iza­tion schemes to ease trans­ac­tions on the network.

Read Cardano’s [ADA] price pre­dic­tion 2023–2024

Fur­ther­more, the week­ly devel­op­ment report showed that Car­dano was work­ing towards its pay­ment litepa­per as the total num­ber of trans­ac­tions on the chain hit 54.6 million.

Cardano weekly development update

Source: Input Output

Is Cardano socially deficient after all?

Despite the ongo­ing efforts to reach devel­op­men­tal land­marks, ADA’s social met­rics wit­nessed lit­tle gain. Accord­ing to San­ti­ment, the token’s social vol­ume had decreased to 33 as of 18 Novem­ber. Despite surg­ing to 293 on 17 Novem­ber, the met­rics indi­cat­ed that ADA had rarely been men­tioned on social plat­forms, which like­ly caused its declin­ing interest. 

Addi­tion­al­ly, its social dom­i­nance was 0.535%, sig­ni­fy­ing a decrease in the search and dis­cus­sion relat­ing to the asset. Hence, there was no hype sur­round­ing ADA, with the pos­si­bil­i­ty that the bot­tom was not in at $0.332.

Cardano social volume and social dominance

Source: San­ti­ment

One might have expect­ed the devel­op­ment activ­i­ty to spike, con­sid­er­ing the progress under­way. How­ev­er, that was not the state of affairs. Santiment’s data dis­closed that the devel­op­ment activ­i­ty on-chain was not improving. 

As of this writ­ing, ADA’s devel­op­ment activ­i­ty had decreased to 67.19. This point meant that the ongo­ing upgrade was not at its peak and the mile­stones record­ed were minimal.

Cardano's price and development activity

Source: San­ti­ment

What’s in it for traders and…

The devel­op­ment also did not seem to spark sig­nif­i­cant inter­est among traders in the deriv­a­tives mar­ket. Accord­ing to Coin­glass, ADA’s fund­ing rate across all exchanges had improved slight­ly. How­ev­er, the recent increase was still neg­li­gi­ble. This implied that futures and options traders had only ded­i­cat­ed a small por­tion of liq­uid­i­ty to poten­tial­ly prof­it from Cardano.

In return, the inter­est rate affect­ed the liq­ui­da­tion data. Coin­glass’ data showed that there have been about $340,000 in ADA liq­ui­da­tions until 18 Novem­ber. Notably, the casu­al­ty was caused by short trades. This might still not be sur­pris­ing as ADA’s price increased 2.28% between 17 and 18 Novem­ber. Still, there was no guar­an­tee that longs would con­tin­ue to profit.

Cardano funding rate

Source: Coin­glass

In con­clu­sion, San­ti­ment showed that the pos­i­tive sen­ti­ment attached to ADA was more than the neg­a­tive sen­ti­ment. While the pos­i­tive was at 18.96, the bee­hive was at 13.03. Since it was a close call, the pos­si­ble ADA move­ment was most like­ly con­sol­i­da­tion or a slight increase or decrease from its cur­rent price.

Cardano postive and negative sentiment

Source: San­ti­ment

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