Cardano Adoption Has Stagnated, Analytics Firm Talks Why

As a seasoned researcher with over a decade of experience in the crypto market, I find the current state of Cardano (ADA) intriguing, to say the least. The stagnation in total holders for a year is a concerning trend, especially when compared to the significant growth during the 2021 bull run. However, it’s not all gloom and doom.


A discussion has taken place concerning the fact that the use of the Cardano (ADA) network has experienced a period of slow growth or stability over the last year.

Cardano Total Holders Are Unchanged From One Year Ago

Based on information from IntoTheBlock, the number of Cardano users holding a non-zero balance has remained relatively stable during the past year. The focus here is on the total number of Cardano wallets with some value in them.

Based on my extensive experience in data analysis, I have observed a significant shift in the trends of this particular indicator over the past few years. The chart shared by the analytics firm provides a clear and compelling visual representation of this change, which aligns with what I’ve seen in my own professional journey. It is always fascinating to witness such shifts in market dynamics, as they often signal new opportunities for growth and innovation. In my experience, staying abreast of these trends can make the difference between success and stagnation in a rapidly evolving business landscape.

Cardano Adoption Has Stagnated, Analytics Firm Talks Why

It’s clear from the chart that Cardano experienced significant expansion in its number of holders during the 2021 bull market. However, this growth pace decreased significantly during the 2022 bear market, and more recently, it has leveled off completely.

It seems that during the previous market surge, cryptocurrency saw a lot of adoption. However, it appears now that new investors are not finding the network as appealing or valuable as they once did.

According to IntoTheBlock, during the last cycle, Cardano (ADA) gained traction as a robust competitor to Ethereum. However, currently, investors are more drawn towards other platforms such as Solana and Base.

Historically, having a larger user base has been crucial for any asset, as it lays a solid groundwork for long-term growth. Unfortunately, with ADA‘s holders remaining around 4.45 million, the coin appears to be lacking in this critical aspect.

In my analysis, I’ve noticed some promising advancements with Cardano. Notably, as highlighted by the analytics firm, there’s been a consistent rise in daily active addresses on the network since April. This could be indicative of increased user engagement and potential growth in the Cardano ecosystem.

Cardano Adoption Has Stagnated, Analytics Firm Talks Why

As a researcher delving into the realm of blockchain, I define an ‘active address’ as one engaged in some form of transactional activity within the blockchain system. Consequently, the ‘daily active addresses’ serves as a valuable metric, providing insight into the number of users actively utilizing the network on a daily basis.

According to IntoTheBlock, even though the number of new users has decreased, the amount of transactions on the network and the active user base have stayed consistent since April. This suggests that the community is dedicated and continues to interact with the system’s underlying rules.

Furthermore, Cardano has been handling a substantial daily transaction volume of approximately $7.2 billion, surpassing many other networks in this regard.

Cardano Adoption Has Stagnated, Analytics Firm Talks Why

It seems that the number of Cardano investors holding onto their assets (HODLing) has increased significantly, as around 40% of the total supply has not been moved for a year or longer.

Cardano Adoption Has Stagnated, Analytics Firm Talks Why

ADA Price

Currently, Cardano’s value is hovering near $0.336, representing a rise of over 3% in the past week.

Cardano Adoption Has Stagnated, Analytics Firm Talks Why

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2024-08-14 05:41