- Cardano remains active in terms of users with 4.45M active addresses, while operating under pressure from competitors.
- Cardano processes $7.2B daily on-chain volume, which may mean ADA could be undervalued with an NVT ratio of 2.62.
- Long-term investors currently own 40% of ADA, proving their faith in Cardano’s prospects despite struggling markets.
IntoTheBlock, an analytical platform, revealed in a recent X post that Cardano has demonstrated extreme stability in terms of addresses’ number and balance that hovers around 4.45 million for the year. This is despite other problems the network has had in attracting new users due to increasing focus amongst crypto enthusiasts on newer and potentially more efficient networks such as Solana and Base.
While Cardano was once lauded for its growth and possibilities to become a serious competitor to Ethereum in the previous market cycle, now it is in more problematic position. The current has slowed down the acquisition of new users staking its growth prospects amid deepening competition.
Cardano’s Loyal User Base Holds Steady
However, the network’s core community seems unperturbed as ever. Since the beginning of April, both transactional activities and the user activity on ADA has remained steady, proving that it has an avid user base. Even while new users might have plateaued, both previously and currently active participants in the ecosystem’s products remain vociferously committed to the protocol.
Source: Image by IntoTheBlock
Cardano at this point could handle $7.2 billion daily, thus outcompeting many of the blockchain based stocks. Such high transaction volumes combined with a very low Network Value to transactions (NVT) at 2.62, suggests that ADA, cardano ‘s native token may be effected in the current situation.
Related: https://cryptoweeklyjournal.com/analyst-eye-1400-to-2200-surge-for-cardano/
To the list of positive signs of the network, one can add a rising percentage of long-term investors in ADA. The detailed analysis presented by IntoTheBlock also shows that for the first time in the history of ADA, long-term investors have accumulated almost 40% of its total supply.
Source: Image by IntoTheBlock
This trend can be considered as an evidence of a high confidence level among investors, meaning that most investors who bet on ADA believe that there is strong potential to attract more users to the network further notwithstanding existing difficulties associated with the process.
Looking at these numbers one could see that although Cardano goes through periods of formatively changes in the crypto space. Over the next few months it would be interesting to see whether ADA could build on this stability and managed to turn up the growth of the blockchain platform again
