Over the past year, Cardano has maintained a steady number of addresses with a balance, hovering around 4.45 million.
While the last market cycle saw Cardano rise as a strong alternative to Ethereum, the current cycle presents challenges as attention shifts to newer platforms like Solana and Base.
Despite these hurdles, Cardano’s network activity remains resilient. The transaction count and active user base have held steady since April, reflecting a dedicated community that continues to support and engage with the platform.
This consistent activity suggests that while Cardano may not be attracting new users at the same pace as before, its existing user base remains robust and loyal.
Cardano’s on-chain metrics further underscore its strength. The network settles approximately $7.2 billion in daily on-chain volume, outpacing many other blockchain networks. This high transaction volume results in a notably low Network Value to Transactions (NVT) ratio of just 2.62, which could signal that $ADA is currently undervalued.
Cardano’s number of addresses with a balance has hovered around 4.45 million for over a year. Here's what's going on👇
During the last cycle, Cardano experienced significant growth, positioned as a strong alternative to Ethereum. However, in the current cycle, the network faces… pic.twitter.com/WJrnAP8FQZ
— IntoTheBlock (@intotheblock) August 13, 2024
About 40% Of $ADA Supply Is Now Held By Long-Term Investors
Moreover, confidence in Cardano is evident in the behavior of its long-term holders. Nearly 40% of $ADA’s supply is now held by long-term investors, an all-time high for the network. This significant holding pattern indicates strong belief in Cardano’s future prospects, despite the current market dynamics.
As Cardano navigates these challenges, its stable transaction activity, high on-chain volume, and strong long-term holder base position it as a resilient player in the evolving blockchain landscape.
While it may face competition from newer platforms, Cardano’s committed community and solid fundamentals suggest that it remains a force to be reckoned with in the crypto space.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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