Long-Term Holders Dominate as Cardano Builds for Tomorrow

• Cardano’s address count remains stable at 4.45 million, reflecting a committed and active community.
• Long-term holders hold nearly 40% of the ADA supply, demonstrating their strong confidence in the network.

In a tweet, IntoTheBlock reported that Cardano, one of the most popular blockchain networks, has seen its number of addresses with a balance steady at roughly 4.45 million over the last year. This constancy in address numbers, despite the network’s difficulty in acquiring new users, is significant.

Cardano had significant growth over the last crypto market cycle, establishing itself as a viable competitor to Ethereum.

However, the current cycle has been less favorable to Cardano, as much of the attention in the blockchain sector has migrated to newer and speedier platforms like Solana and Base. As a result, the question arises: What lies ahead for Cardano in this constantly changing ecosystem?

Cardano’s number of addresses with a balance has hovered around 4.45 million for over a year. Here's what's going on

During the last cycle, Cardano experienced significant growth, positioned as a strong alternative to Ethereum. However, in the current cycle, the network faces… pic.twitter.com/WJrnAP8FQZ

— IntoTheBlock (@intotheblock) August 13, 2024

Cardano Stability Reflects Strong Community Commitment 

Despite a slowdown in new user growth, Cardano’s transaction count and active user base have stayed relatively steady since April. This shows that the network still has a dedicated community that actively uses the protocol.

Such regularity in user activity is a good sign for the network’s long-term health, especially in a sector where competition is severe and focus can easily move from one initiative to another.

Furthermore, Cardano continues to settle around $7.2 billion in on-chain volume every day, which is higher than many other blockchain networks. This high transaction volume, along with a low Network Value to Transactions (NVT) ratio of 2.62, shows that Cardano’s native crypto, ADA, may be undervalued.

The NVT ratio, which is frequently used as a statistic to assess the relative value of a network, suggests that the market may not completely comprehend Cardano’s current activity and potential.

Furthermore, long-term holders now own nearly 40% of the overall supply of ADA, a record high. This trend shows a high level of confidence among ADA holders, indicating that many are optimistic about the network’s long-term prospects.

A high percentage of long-term holdings is frequently associated with price stability and can provide a solid platform for future price appreciation.

At the time of writing, ADA is trading at around $0.3384, down 0.82% over the last 24 hours. The price has been fluctuating in a rather limited range, reflecting overall market circumstances and investor sentiment.

On the other hand, as we previously reported, analysts are positive about the future of ADA, predicting that the cryptocurrency will experience a major price increase. According to some projections, ADA might reach $2.70 in the short term and potentially exceed $7.82 in the long run.

Cardano also leads in blockchain development activity, as the network prepares for the imminent Chang hardfork. According to reports, 72% of Stake Pool Operators have already installed the essential software, ensuring a smooth deployment of this substantial improvement.

This development activity demonstrates Cardano’s dedication to continual improvement and innovation, allowing the network to remain competitive in a quickly changing blockchain landscape.

Furthermore, according to CNF, Coti, the creator of the Djed stablecoin on Cardano, has completed a significant protocol upgrade, with Djed 1.2 now operational. This version adds various new features, including enhanced accessibility, and is expected to strengthen Djed’s position in the Cardano DeFi ecosystem.