Cardano ($ADA): Growing Transaction Volume and Pursuit of Steady Development
The Cardano contract platform ($ADA) has been making waves in the cryptocurrency world, with its transaction volume seeing significant growth this year. Cardano has attracted investors’ interest despite the market downturn and maintained its on-chain performance. According to a recent analysis by data analytics firm IntoTheBlock, Cardano’s transaction volume has seen a tremendous 205% year-over-year increase, reaching more than 26 billion ADA transacted daily.
The analysis also sheds light on the accumulation of ADA by whales as the big holders continue to add to their positions. Over the last month alone, net flows to ADA have jumped by more than 1,500%. This steady influx of investment is a testament to Cardano’s ongoing commitment to expansion and development initiatives.
Interestingly, Cardano has shown resilience amid the broader cryptocurrency market downturn. Despite facing significant lows this year, Cardano’s transaction volume has bounced back with an increase of 33.45%. Daily transaction volume recently hit a three-month high of 98,000, demonstrating the platform’s enduring popularity.
In terms of profitability, the analysis reveals that approximately 22.2% of ADA addresses are currently profitable, while 4.5% broke even. However, the vast majority of ADA holders, accounting for 73.2%, were at a loss. Nevertheless, these users remain optimistic and are holding firm in anticipation of price hikes, despite the recent capitulation.
It should be noted that Cardano’s price movements are closely correlated with leading cryptocurrencies such as BTC and ETH. Thus, ADA is expected to be able to follow the price trends of these assets, further strengthening its position in the market.
Cardano’s decentralized finance (DeFi) ecosystem has also reached a significant milestone, surpassing the 400 million ADA mark in total locked value. Currently, Minswap, a decentralized exchange, leads the way with $58.2 million locked up, followed by Indigo, a collateralized debt protocol, with $30.5 million locked up. This growth in the total value locked on the Cardano DeFi protocol is indicative of a thriving ecosystem and increased user participation.
Although Cardano temporarily lost its position as a leading cryptocurrency network through development activities to Polkadot earlier this year, it has stayed behind, demonstrating its competitive nature. With an innovative approach and a commitment to expansion, Cardano is poised for further growth and success in the ever-evolving cryptocurrency landscape.