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Cardano ($ADA), a prominent smart contract platform, is attracting attention as its on-chain transaction volume has experienced an extraordinary increase of 1,700% since the end of January. As reported by Santiment, a well-known on-chain analytics company, this surge is mainly attributed to the blockchain’s utility. Furthermore, despite ADA’s depressed market price, the network’s functionality is aligning with a significant uptick in ADA’s social dominance.
Although ADA’s value has dropped by 35%, the quantity of Cardano whale wallets containing 100,000 or more ADA reached a 16-month peak last month, totaling 25,294. As a result, Santiment indicates that this may reflect increasing investor confidence, even amid variable market conditions.
Moreover, Cardano recently secured the third position in development activity, following Polkadot ($DOT) and Kusama ($KSM). Notably, development activity pertains to the efforts made by developers over the last 30 days on the project’s public GitHub repositories.
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In a post shared on the microblogging platform X, formerly known as Twitter, a crypto analyst named Ali highlighted ADA’s price history. He noted that from 2018 to 2020, ADA traded within a limited range of $0.10 to $0.28 for 665 days, followed by an impressive 2,985% price increase. Currently, ADA seems to be confined within a $0.46 to $0.24 range for 329 days. Therefore, Ali suggests that if historical patterns persist, ADA might experience another significant breakout around February 2024.
Santiment has also observed a similar increase in on-chain volume for XRP, the native token of the XRP Ledger. Specifically, XRP’s on-chain transaction volume has reached its highest level since February, with key indicators showing robust ecosystem development. For example, the on-chain transaction volume hit 4.8 billion XRP, and the circulating supply reached 2.03 billion XRP.
In summary, Cardano’s substantial growth in on-chain transaction volume, its position in development activity, and the rise in whale wallets indicate a potentially positive outlook. However, investors should remain vigilant and well-informed, as the cryptocurrency market is notoriously volatile. Whether Cardano can sustain this momentum is a question that will be answered over time.
The post Cardano’s On-Chain Volume Skyrockets 1,700%: What’s Fueling the ADA Surge? appeared first on BitcoinWorld.
