Cardano (ADA), a prominent smart contract-based blockchain, has experienced a significant increase in on-chain activity. As the wider digital asset landscape becomes mainstream globally, the Cardano ecosystem has seen a resurgence in DeFi (Decentralized Finance) development, evidenced by the growing adoption of Dapps such as Minswap, Indigo, MuesliSwap, and Liqwid.
However, the network also faces significant regulatory scrutiny in the United States, with the Securities and Exchange Commission (SEC) recently placing ADA on a list of digital assets that may be classified as securities.
Rising on-chain activity:
Market intelligence platform Santiment’s on-chain analysis reveals a notable increase in Cardano’s on-chain activity, driven by increased adoption and participation. Accumulation of ADA by both major investors (sharks and whales) and individual holders has been observed in recent months.
Notably, investors holding between 100,000 and 10 million ADAs have collectively added $116.1 million worth of coins since May 21 of this year. This increase in accumulation has pushed Cardano’s whales and sharks to their highest levels since September 2022.
Transaction volume increase:
Cardano’s on-chain transaction volume has steadily increased over the past six months. Santiment highlights consecutive weeks of transaction volumes exceeding 67 billion ADA, a remarkable high not seen since September 2021. This continued increase in transaction activity underlines the increasing use of the Cardano network for various purposes.
Pricing Implications:
Amid the escalating on-chain activity, a crucial question arises regarding the potential correlation between Cardano’s on-chain performance and its price movement. ADA, currently valued at $13 billion, has maintained year-to-date stability of about 30 cents after a challenging year in 2022 marked by a drop in value.
Conclusion:
The increase in on-chain activity of the Cardano (ADA) network, coupled with the growing DeFi ecosystem and adoption of various Dapps, reflects its growing importance in the blockchain landscape. Despite regulatory scrutiny, the network’s increased transaction volume and accumulation by major investors indicate a promising trajectory.
As the crypto community speculates on whether the increased on-chain activity will translate into a price hike for ADA, the cryptocurrency market is watching closely to see how Cardano’s journey will unfold in the coming months.