Since early last year, the number of new addresses created within the Cardano (ADA) blockchain has been growing at an unprecedented rate. In the past month alone, the number of new addresses has grown by nearly 100,000. This coincides with the recent growth of Cardano’s DeFi (decentralize finance) ecosystem.
JUST IN: #Cardano has added 100,000 wallets to its network in the past month.
— Watcher.Guru (@WatcherGuru) April 18, 2022
As first reported by Finbold, the proof-of-stake (POS) blockchain platform had roughly 3.16 million wallets as of March 17. One month later, nearly 93,630 wallets had joined.
This surge in growth is likely due to the increased interest in Cardano’s DeFi offerings. Recently, a number of high-profile DeFi projects have launched on the Cardano blockchain including the addition of stablecoins Tether (USDT) and USD Coin (USDC) through WingRiders decentralized exchange (DEX) as well as the release of Cardano’s ERC-20 converter, a tool that enables anyone to move AGIX and NTX tokens between the Ethereum and Cardano blockchains. This has led to an influx of users seeking to take advantage of the platform’s unique features.
The number of new addresses created — a steady increase from 2K to above 8K additions daily — is a good indicator of the health of the Cardano network. Additionally, the total volume of transactions larger than $100,000 in ADA surged by over 45x since the beginning of the year, suggesting strong institutional interest.
This is great news for ADA holders, as it indicates that the project is gaining traction and growing in popularity. The main reasons behind these positive developments are the underlying fundamentals of the blockchain.
The launch of the Shelley mainnet was a major milestone for Cardano as it helped the network transition to a fully delegated POS mechanism. The switch from Byron’s centralized federated system brought a huge increase in the number of users on the network, as well as an influx of new projects built on the blockchain.
In fact, Cardano is one of the few networks that has seen solid growth in areas including, sidechains, NFTs & partnerships, launchpads & project launches Defi/GameFi, and converter bridges. The blockchain currently has nearly 900 projects under development.
Cardano is also one of the few blockchains that is truly decentralized, with a large number of nodes spread across the globe, and one that’s built on a scientific philosophy, with a team of researchers constantly working on improving the protocol.
In addition, the team behind Cardano is expecting the upcoming Vasil Hard Fork to improve massively the performance of the platform given it will enhance the range of DEXs, DeFi, as well as smart contracts. Cardano’s Charles Hoskinson has even suggested that many ADA dApps are waiting for the upgrade’s June launch, which includes pipelining to support scaling, to join in. All of these developments are expected to drive further growth on the network and increase the price of ADA.
In the last year, the price of the altcoin has plunged more than 68%, and it is currently trading at around $0.92, a 2.80% loss over that past 24 hours. However, the strong network’s fundamentals could help improve the near-term outlook for the cryptocurrency whose $31 billion market cap makes it the ninth-largest blockchain in the world.
Moreover, a spike in buying pressure could lead to a trending move for the smart contract-powered token rather than just a temporary correction. If this scenario plays out, we could see a strong push higher in ADA as buyers look to take advantage of the moment.
The key level to watch for this move higher will be the $0.95 mark, which has been acting as resistance over the past few days. A break above this level could spark a strong rally that takes ADA to the $1.00 – $1.10 range. That said, there’s also the possibility of a bearish trend reversal invalidating the optimistic outlook if the altcoin breaks below the $0.90 – $0.85 zone.
Disclaimer: The information provided is not trading advice