The post Cardano (ADA) Network’s On-Chain Activity Surges Amid Growing DeFi Adoption appeared first on Coinpedia Fintech News
Cardano (ADA), a prominent smart contract-based blockchain, has been experiencing a substantial surge in on-chain activity. As the broader digital asset landscape gains mainstream traction worldwide, Cardano’s ecosystem has seen an uptick 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 potentially classified as securities.
As #Cardano sits just above $0.29, whales and sharks holding between 100K-10M $ADA have accumulated back to their highest level since September, 2022. Additionally, #onchain transaction volume has been rising nearly every week for the past 6 months. https://t.co/x9mUHDIhnx pic.twitter.com/X9WphDpPvy
— Santiment (@santimentfeed) August 8, 2023
Rising On-Chain Activity:
Market intelligence platform Santiment’s on-chain analysis reveals a noteworthy increase in Cardano’s on-chain activity, driven by heightened adoption and participation. Accumulation of ADA by both large investors (sharks and whales) and individual holders has been observed over the past several months.
Notably, investors holding between 100,000 to 10 million ADAs have collectively added $116.1 million worth of coins since May 21 of this year. This surge in accumulation has pushed Cardano’s whales and sharks to their highest level since September 2022.
Transaction Volume Surge:
Cardano’s on-chain transaction volume has been on a steady upward trajectory over the last six months. Santiment highlights consecutive weeks with transaction volumes surpassing 67 billion ADA, marking a notable high not seen since September 2021. This sustained increase in transaction activity underscores the growing utilization of the Cardano network for various purposes.
Price Implications:
Amid the escalating on-chain activities, a pivotal question arises regarding the potential correlation between Cardano’s on-chain performance and its price movement. ADA, currently valued at $13 billion, has maintained stability around 30 cents year-to-date, following a challenging year in 2022 characterized by a decline in value.
Conclusion:
The Cardano (ADA) network’s surge in on-chain activity, coupled with its expanding DeFi ecosystem and the adoption of various Dapps, reflects its growing significance in the blockchain landscape. Despite facing regulatory scrutiny, the network’s increased transaction volume and accumulation by large investors signify a promising trajectory.
As the crypto community speculates on whether the heightened on-chain activities will translate into a price surge for ADA, the cryptocurrency market watches closely to see how Cardano’s journey unfolds in the coming months.
