The world’s seventh-largest cryptocurrency by market capitalization has seen a significant rise in its daily trading volume since the beginning of the year. Data gathered by IntoTheBlock revealed that ADA’s daily transaction volume grew by more than 205% year-to-date (YTD). The transaction count reportedly remained stable amid the bear market conditions.
The market intelligence platform IntoTheBlock shared a series of tweets highlighting Cardano’s positive trends:
5/ We also see a clear increase in transaction volume. Cardano daily transaction volume is up significantly since lows at the end of 2022. Currently, $ADA transaction volume is up 205.01% YTD, with over 26B $ADA transacted daily. pic.twitter.com/CeoMFKiaqI
— IntoTheBlock (@intotheblock) May 22, 2023
According to on-chain analytics firm IntoTheBlock, the two metrics that stood out for Caradno were its transaction count and transaction volume. In theTwitter thread posted earlier today, the firm revealed that ADA’s transaction count saw a 33.45% increase from the yearly lows. A peak was recently witnessed in its daily transaction volume when it reached a three-month high with 98,000 transactions in a day.
The on-chain analytics firm doesn’t expect a significant impact from Cardano’s recently launched layer 2 scalability solution Hydra, given that the transactions on that layer don’t get recorded on the main chain. Meanwhile, over 26 billion ADA has changed hands daily, taking its transaction volume significantly higher than the lows witnessed at the end of 2022.
Those trading between $10 to $100 emerged as the most active group of users on the network. Over the past three months, this group accounted for 28% of the total transactions on the Cardano network. Out of the total addresses engaging with the network, more than 22% are profitable. 4.5% of the addresses managed to break even while 73.2% experienced losses.
IntoTheBlock believes that the majority of Cardano’s users are anticipating a strong rally in ADA’s price, despite the capitulation faced by the network in recent months. In addition to a strong outlook, ADA reportedly exhibited a strong correlation with the price action of leading cryptocurrencies like BTC and ETH.
ADA exhibited price movements similar to those noticed in BTC’s charts, making the crypto more likely to move in the same direction as the flagship cryptocurrency. The recent network troubles failed to deter ADA whales from accumulating the crypto. IntoTheBlock found recent spikes in net flows, signaling accumulation from large holders. Net flows have spiked over 1500% in the past 30 days.
