Cardano, once seen as a strong contender to Ethereum, now faces a period of stagnation. Insights from the analytics platform IntoTheBlock show that the number of Cardano addresses with a balance has remained around 4.45 million for over a year. In a recent X post, the platform highlighted that this lack of growth underscores the network’s challenge in attracting new users. This challenge is particularly evident as attention shifts to competitors like Solana and Base.
According to the platform findings, in the previous market cycle, Cardano gained significant traction, fueled by its potential to overcome Ethereum’s limitations. The network’s innovative approach and strong community support positioned it as a formidable player in the blockchain space. However, as the current cycle unfolds, Cardano appears to be losing its edge. The explosive growth that once defined its rise has given way to a period of stagnation, with the platform struggling to maintain its relevance in a rapidly evolving market.
Despite these difficulties, Cardano’s transaction count and active user base have remained steady since April. This stability indicates that while the network may not attract many new users, its existing community continues to engage actively. The ongoing participation of this core group reflects the resilience of the Cardano ecosystem, which remains strong even amid external pressures.
Cardano’s on-chain activity continues to demonstrate robust performance, indicating strong engagement and use of the network. The network processes around $7.2 billion daily in on-chain volume, outpacing many of its competitors. This significant transaction volume is reflected in Cardano’s Network Value to Transactions (NVT) ratio, currently at 2.62. A low NVT ratio often suggests that a cryptocurrency is undervalued, implying that ADA, Cardano’s native token, might be priced below its true potential.
Analyst Predicts Key Breakout and Buying Opportunities for Cardano (ADA)Moreover, long-term holders’ confidence in Cardano remains high. Nearly 40% of ADA’s total supply is now held by long-term investors, marking an all-time high. This level of commitment from holders indicates strong faith in the platform’s future despite its current challenges.
During the current phase of stagnation, Cardano needs to find a way to recover and get back on the upward trend. The coming months would indicate whether Cardano could overcome these challenges and regain its dominance in the blockchain market.
