Cardano Transaction Data: Stable Count, Impressive Growth

Cardano, one of the leading Layer networks in the industry, is making waves in the cryptocurrency world, as revealed by on-chain analytics.

IntoTheBlock recently tweeted about the network’s impressive performance, prompting further investigation into its transaction data and overall on-chain behavior.

1/ Cardano is one of the top Layer 1 networks in the industry. Let’s dive into some of the on-chain analytics to see how the network is doing. #CardanoCommunity

— IntoTheBlock (@intotheblock) May 22, 2023

Two key factors of Cardano’s transaction data stand out: transaction count and volume. Despite bear market conditions, the transaction count remained relatively stable and experienced a significant 33.45% increase from its yearly lows.

Furthermore, there was a notable surge in daily transaction volume, reaching a three-month high with a staggering 98,000 transactions recorded in a single day.

Impact of Hydra: Cardano Layer 2 Scalability Solution

A recent development that impacted Cardano’s on-chain behavior is the introduction of Hydra, a layer 2 scalability solution. While transactions on this layer are not recorded on the main chain, it is not expected to have an impact.

Transaction volume on Cardano has substantially increased, particularly since the lows witnessed towards the end of 2022. Year-to-date, ADA transaction volume has surged by an impressive 205.01%, with over 26 billion ADA tokens transacted daily.

An interesting observation within the network is the high engagement of users involved in trades ranging from $10 to $100.

During the period of the three-month transaction peak, this particular group accounted for 28% of the total transactions. Noteworthy statistics highlighting the active participation of retail investors.

Regarding financials, 22.2% of addresses are currently profitable, while 4.5% are breaking even. However, a significant majority, 73.2%, are experiencing losses.

Despite the recent capitulation of the ADA token, most users are still holding onto their assets, anticipating a future price increase.

Like many assets in the cryptocurrency industry, ADA exhibits a strong positive correlation with Bitcoin (BTC) and Ethereum (ETH) price movements. Consequently, ADA will likely move in the same direction as these leading digital assets.

Notably, ADA whales have been actively accumulating. Recent spikes in net flows indicate significant accumulation by large holders, with a remarkable increase of over 1500% in net flows over the past 30 days.

Cardano’s on-chain analytics reveal positive trends, including a stable transaction count, increased transaction volume, whale accumulation, and active wallet usage.

However, these exciting developments continue to shape the Cardano network, offering potential opportunities for investors and enthusiasts.

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