Token

Cardano

bullish

<ul> 
 <li>Cardano’s wallet growth has stagnated at around 4.45 million for over a year despite major network upgrades.</li> 
 <li>The number of ADA holders surged during the last bull cycle but has plateaued.</li> 
</ul> 
According to the latest data from IntoTheBlock, Cardano (ADA) has seen little growth in the number of wallets holding its tokens, remaining around 4.45 million for over a year. Although the network is gearing up for its biggest technical upgrade, the number of ADA holding addresses has stagnated since 2023. 
<img loading="lazy" decoding="async" class=" wp-image-790485 aligncenter" src="https://www.crypto-news-flash.com/wp-content/uploads/2024/08/unnamed-2024-08-14T184004.493-300x75.jpg" alt="" width="600" height="150" srcset="//www.crypto-news-flash.com/wp-content/uploads/2024/08/unnamed-2024-08-14T184004.493-300x75.jpg 300w, //www.crypto-news-flash.com/wp-content/uploads/2024/08/unnamed-2024-08-14T184004.493-150x38.jpg 150w, //www.crypto-news-flash.com/wp-content/uploads/2024/08/unnamed-2024-08-14T184004.493-450x113.jpg 450w, //www.crypto-news-flash.com/wp-content/uploads/2024/08/unnamed-2024-08-14T184004.493.jpg 512w" sizes="(max-width: 600px) 100vw, 600px"> 
During the last bull cycle, Cardano saw a surge in ADA holders due to its marketing as a competitor to Ethereum. <a href="https://www.crypto-news-flash.com/cardano-investor-david-lee-success-through-research-and-patience/" target="_blank" rel="nofollow noopener">ADA’s wallets increased </a>from less than 1 million in January 2021 to nearly 4 million in September 2021. This growth was in tandem with the increase in ADA’s market capitalization, which hit $3.1 in September 2021.&nbsp; 
However, after reaching its all-time high, the value of ADA started to drop, while the number of Cardano wallets increased but at a slower rate. This growth has stalled since it reached 4.45 million in 2023.&nbsp; 
<h3 id="strong-development-activity-plummets-on-cardano-network-strong">Development Activity Plummets on Cardano Network</h3> 
The development activity of Cardano has been seen to have reduced drastically. Token Terminal<a href="https://tokenterminal.com/terminal/financial-statements/cardano" target="_blank" rel="nofollow noopener"> reported</a> that Cardano’s code commits were decreased by 74. 5% in August 2024 to stand at 338 from 1,330 in July. This reduction also involves a decrease of almost 9% in the core developers’ count, and they are now 95.&nbsp; 
The current trend of reduced development activity can be noticed even after the recent <a href="https://www.crypto-news-flash.com/why-dogecoin-doge-millionaire-remains-confident-in-cardano-ada-ahead-of-the-chang-fork-upgrade/" target="_blank" rel="nofollow noopener">Chang hard fork,</a> which was aimed at improving the synchronization between the nodes. On the other hand, Ethereum has recorded a 14% rise in code commits in the last month, with the total number of commits standing at 1,110.&nbsp; 
Cardano’s stagnation in wallet growth does not affect the users’ engagement and transactional activity. According to IntoTheBlock, Cardano has a daily on-chain volume of $7. 2 billion, which is higher than many other networks. This high transaction volume leads to a low NVT ratio of 2. 62, which suggests that ADA might be undervalued.&nbsp; 
Also, Cardano’s HODLing sentiment is high. According to data provided, nearly 40% of ADA has not been moved in the last year and is currently stuck in dormant wallets. This high level of long-term holding shows that investors remain committed to the Cardano network even with low rates of new users.&nbsp; 
<h3 id="strong-ada-price-struggles-but-shows-potential-recovery-signs-strong">ADA Price Struggles but Shows Potential Recovery Signs</h3> 
ADA has not been spared either, as its price has also been affected. ADA has displayed <a href="https://www.crypto-news-flash.com/cardano-ada-price-set-for-2-7-cardanos-732-breakout-looms-large-amid-heightened-development-activity/" target="_blank" rel="nofollow noopener">signs of recovering</a> from the 23% decline it had witnessed in the last 30 days on both the weekly and daily charts. However, ADA is still around 90% from its all-time high of $3. The price stood above $0.70 in March and has since dropped to around $0.30 in August, thus experiencing a decline of nearly 60%.&nbsp; 
Crypto analyst Bitcoinsensus<a href="https://twitter.com/Bitcoinsensus/status/1823280706270683570" target="_blank" rel="nofollow noopener"> has pointed </a>out some recovery signals, including a bullish pennant pattern on the charts. This pattern is usually a sign of a consolidation phase, which may be followed by a breakout.&nbsp; 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <a href="https://twitter.com/search?q=%24ADA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ADA</a> has experienced a significant decline, dropping over 58% from its peak on March 13, 2024. However, it is currently forming a bullish pennant, and there’s potential for a bullish reversal as the RSI on the 3-day chart shows hidden bullish divergence between the last two price… <a href="https://t.co/Y5yPGTEnrO">pic.twitter.com/Y5yPGTEnrO</a> 
 — Bitcoinsensus (@Bitcoinsensus) <a href="https://twitter.com/Bitcoinsensus/status/1823280706270683570?ref_src=twsrc%5Etfw">August 13, 2024</a>
</blockquote> 
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Cardano’s Biggest Upgrade Yet: Why New User Growth is Stalling

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