An analytics firm has discussed how Cardano (ADA) network adoption has hit a plateau over the past year.
Total Cardano holders unchanged in 1 year
According to data from In the massADA has seen its user base stagnate over the past year. The metric of interest here is the total number of Cardano addresses that hold some non-zero balance.
Here’s a chart shared by the analytics firm that shows the trend of this indicator over the past few years:
The value of the metric appears to have been moving sideways for quite the while now | Source: IntoTheBlock on X
As you can see from the chart, Cardano enjoyed significant growth in its holder base during the 2021 bull run, but the metric’s increase slowed down during the 2022 bear market and then plateaued completely last year.
This suggests that while the cryptocurrency has gained significant adoption during the recent bull run, new investors no longer find the network worthwhile.
IntoTheBlock notes that the growth during the previous cycle came with ADA being positioned as a strong alternative to Ethereum, but these days, investors are instead drawn to other networks like Solana and Base.
Historically, adoption has been important for any asset, as a broader user base can provide a stronger foundation for growth in long-term moves. With ADA holders still at 4.45 million, the coin does not appear to be well-positioned in terms of this metric.
However, there have also been some developments that could be more positive for Cardano. As the analytics firm points out, the network has seen a stable trend in daily active addresses since April.
Looks like the indicator's value has been flat over the last few months | Source: IntoTheBlock on X
An active address is an address that is engaged in some type of transaction activity on the blockchain. Thus, daily active addresses are a metric that reflects the number of users using the network each day.
“Despite the slowdown in new users, the network’s transaction count and active user base have remained stable since April, indicating a committed community that continues to engage with the protocol,” explains IntoTheBlock.
Additionally, Cardano has also processed a high daily volume of $7.2 billion recently, which is more than many other networks.
The 7-day data for the on-chain transfer volume on the ADA network | Source: IntoTheBlock on X
HODLing also appears to be on the rise among Cardano investors, with nearly 40% of the supply remaining idle for a year or more.
The distribution of the ADA supply among the different investor groups | Source: IntoTheBlock on X
Ada price
At the time of writing, Cardano is trading at around $0.336, up more than 3% over the past seven days.
The price of the coin appears to have been stagnant recently | Source: ADAUSD on TradingView
Featured image by Dall-E, IntoTheBlock.com, chart by TradingView.com