Cardano Network Sees Surge With $7.2B in On-Chain Volume

A recent analysis by blockchain analytic firm IntoTheBlock has spotlighted Cardano for its impressive on-chain activity. The data shows that Cardano handles approximately $7.2 billion in transactions each day, a volume that surpasses many other blockchain networks.

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

Interestingly, Cardano’s low Network Value to Transaction (NVT) ratio stands at just 2.62. This ratio, which compares a cryptocurrency’s market cap to its transaction volume, is often used to gauge whether a coin is undervalued or overvalued. A low NVT ratio, like Cardano’s, might suggest that ADA is trading below its intrinsic value, signaling potential undervaluation.

Cardano’s Price Down 89%

Currently, ADA is valued at $0.334, which is 89.2% below its peak price of $3.10 reached in September 2021. This significant drop highlights the contrast between ADA’s current valuation and its previous high.

On a positive note, the proportion of ADA held by long-term investors has reached a new record, with about 40% of the total supply now in long-term hands. This increase in long-term holding indicates a strong level of confidence among ADA investors.

Despite these positives, Cardano is struggling to attract new users. The number of addresses holding ADA has stagnated around 4.45 million for over a year, highlighting a slowdown in new user growth. This stands in contrast to the substantial growth Cardano experienced in the previous market cycle, when it was considered a serious alternative to Ethereum.

According to IntoTheBlock, while new user acquisition has slowed, Cardano has maintained steady transaction volumes and an active user base since April. This consistency suggests that while the network may face challenges in expanding its user base, its current community remains engaged and committed to the protocol.

ADA at $5?

Analysts from the Discover Crypto YouTube channel, with 1.4 million subscribers, suggest that Cardano could reach $5. The prediction contrasts with the negative views circulating in the cryptocurrency community, which question ADA’s future.

The analyst addressed the widespread negativity by pointing out bearish reports from various crypto news sources. He noted that despite Cardano being labeled a “dead coin,” the network continues to see active development.

The analyst urged viewers to ignore the negative headlines and instead focus on the significant improvements and strong technical signs that support a positive outlook for Cardano.