An analytics firm has discussed about how the adoption of the Cardano (ADA) network has hit a phase of stagnation in the course of the past yr.
Cardano Total Holders Are Unchanged From One 12 months Ago
In response to data from IntoTheBlock, ADA has seen its userbase stagnate over the past yr. The metric of interest here is the overall amount of Cardano addresses which can be carrying some non-zero balance.
Below is the chart shared by the analytics firm that shows the trend on this indicator over the past few years:
The worth of the metric appears to have been moving sideways for quite the while now | Source: IntoTheBlock on X
As is visible within the graph, Cardano had enjoyed notable growth in its holder base in the course of the 2021 bull run, however the metric’s increase slowed down in the course of the 2022 bear market after which completely hit a plateau up to now yr.
This could suggest that while the cryptocurrency had been gaining significant adoption within the last bull run, recent investors are not any longer finding the network worthwhile.
IntoTheBlock notes that the expansion in the course of the previous cycle had come as ADA was positioned as a powerful alternative to Ethereum, but today, investors are as an alternative being attracted by other networks like Solana and Base.
Historically, adoption has been vital for any asset, as a wider user base can provide a stronger foundation for long-term moves to grow on. With ADA’s holders stuck across the 4.45 million mark, the coin definitely doesn’t seem well arrange by way of this metric.
That said, there have also been some developments for Cardano that may very well be more positive. Because the analytics firm has identified, the network has seen a stable trend within the each day lively addresses since April.
Looks just like the indicator's value has been flat over the previous couple of months | Source: IntoTheBlock on X
An lively address is one which is participating in some form of transaction activity on the blockchain. Thus, the each day lively addresses is a metric that reflects the quantity of users which can be using the network day by day.
“Despite the slowdown in recent users, the network’s transaction count and lively user base have remained stable since April, indicating a committed community that continues to interact with the protocol,” explains IntoTheBlock.
Moreover, Cardano has also been processing a high each day volume of $7.2 billion recently, which is greater than many other networks.
The 7-day data for the on-chain transfer volume on the ADA network | Source: IntoTheBlock on X
It might also appear that HODLing conviction has been on the rise amongst Cardano investors, with nearly 40% of the provision remaining dormant for a yr or more.
The distribution of the ADA supply amongst the several investor groups | Source: IntoTheBlock on X
ADA Price
On the time of writing, Cardano is floating around $0.336, up greater than 3% over the past seven days.
The value of the coin appears to have been stagnant recently | Source: ADAUSD on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com