Cardano’s On-Chain Analytics Show Positive Growth and Resilience Amidst Bear Market Conditions
In a recently published analysis by data analytics firm IntoTheBlock, Cardano, one of the top Layer 1 networks in the cryptocurrency industry, is hailed for its positive on-chain analytics. The report delves into key metrics, shedding light on the network’s performance and exciting developments that have shaped its growth.
One of the first observations made by IntoTheBlock is the stability of Cardano’s transaction count, even during bear market conditions. The network has shown resilience, with a remarkable 33.45% increase in transaction count from the yearly lows. This stability is a testament to the strong foundation and community support behind Cardano.
3/ In general, the transaction count stayed quite stable during bear market conditions and saw a 33.45% increase from the yearly lows. Recently, there was a notable peak in daily transaction volume, reaching a three-month high with 98,000 transactions in a single day. pic.twitter.com/COSU06TYn1
— IntoTheBlock (@intotheblock) May 22, 2023
Moreover, Cardano experienced a notable surge in daily transaction volume, reaching a three-month high with 98,000 transactions processed in a single day. This increase indicates growing activity and engagement within the network. The surge in transaction volume is particularly significant, as Cardano has witnessed a substantial 205.01% year-to-date increase in transaction volume, with over 26 billion ADA tokens transacted daily.
IntoTheBlock also highlights the introduction of Hydra, Cardano’s layer 2 scalability solution. While transactions conducted on this layer are not recorded on the main chain, it is noted that Hydra’s impact on on-chain behavior is not expected to be significant at this point in time. However, the implementation of Hydra demonstrates Cardano’s commitment to addressing scalability concerns, which will likely have a positive effect on the network’s growth in the future.
Another intriguing finding is the active involvement of traders within the Cardano network. Specifically, users engaged in trades ranging from $10 to $100 accounted for 28% of the total transactions during the observed three-month high. This statistic highlights the broad appeal of Cardano to retail traders and suggests a healthy level of market activity within this price range.
Examining the financials, IntoTheBlock reports that 22.2% of Cardano addresses are currently profitable, while 4.5% are breaking even, and 73.2% are experiencing losses. Despite facing significant capitulation in recent months, a majority of ADA token holders remain resilient, holding onto their positions in anticipation of a price increase. This demonstrates a steadfast belief in the long-term prospects of Cardano.
Furthermore, the analysis reveals that Cardano’s price movements exhibit a strong positive correlation with Bitcoin (BTC) and Ethereum (ETH). As the two largest cryptocurrencies by market capitalization, BTC and ETH often influence the broader market sentiment. Therefore, Cardano is likely to follow similar price trends as these leading assets, underscoring the interconnectivity of the crypto market.
The report concludes with an encouraging note regarding the accumulation of ADA tokens by whales. IntoTheBlock notes a recent spike in net flows, indicating a significant increase in accumulation by large holders. Over the past 30 days, net flows have witnessed spikes of more than 1500%. This accumulation by whales suggests confidence in Cardano’s future prospects and further strengthens the network’s overall market position.
In summary, Cardano’s on-chain analytics paint an optimistic picture of the network’s performance and trajectory. With a stable transaction count, increased transaction volume, accumulation by whales, and active wallet engagement, Cardano continues to solidify its position as one of the top Layer 1 networks in the industry.
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