Cardano’s On-Chain Volume Skyrockets 1,700%: What’s Fueling the ADA Surge?
Cardano ($ADA), a leading intelligent contract network, is turning heads as its on-chain transaction volume has seen a phenomenal 1,700% increase since late January. According to Santiment, a prominent on-chain analytics firm, this spike is primarily driven by the utility of the blockchain. Moreover, despite ADA’s suppressed market value, the network’s utility is meshing well with a notable rise in ADA social dominance.
While ADA’s price has declined by 35%, the number of Cardano whale wallets holding 100,000 or more ADA hit a 16-month high last month, standing at 25,294. Consequently, Santiment suggests that this could indicate growing investor confidence, even in fluctuating market conditions.
Additionally, Cardano recently ranked third in development activity, trailing Polkadot ($DOT) and Kusama ($KSM). Significantly, development activity refers to the work done by developers in the past 30 days on the project’s public GitHub repositories.
In a post shared on the microblogging platform X, previously known as Twitter, a crypto analyst named Ali drew attention to ADA’s price history. He observed that between 2018 and 2020, ADA traded within a narrow range of $0.10 to $0.28 for 665 days, followed by a staggering 2,985% price surge. ADA appears to be stuck in a $0.46 to $0.24 range for 329 days. Hence, Ali suggests that if past trends hold, ADA could see another significant breakout around February 2024.
Santiment has also pointed out a similar surge in on-chain volume for XRP, the native token of the XRP Ledger. Specifically, XRP’s on-chain transaction volume has reached its highest since February, with key metrics indicating strong ecosystem development. For instance, the on-chain transaction volume touched 4.8 billion XRP, and the circulating supply reached 2.03 billion XRP.
In conclusion, Cardano’s dramatic rise in on-chain transaction volume, its ranking in development activity, and the surge in whale wallets suggest a promising future. However, investors should remain cautious and well-informed, as the crypto landscape is famously volatile. Whether or not Cardano can maintain this momentum is a question that only time will answer.