thecryptobasic.com
The addresses holding Cardano (ADA) have stagnated around 4.45 million wallets for over a year despite the network set for its biggest technical advancement.
Analytic platform IntoTheBlock confirmed this data in a recent update. The report highlighted that the Cardano ecosystem has seen a flattened progression in wallets holding ADA tokens since 2023.
The trajectory of Addresses Holding Cardano
Notably, Cardano saw a consistent uptrend in ADA holders in the last bull cycle. This was due to Cardano being promoted as an alternative to the largest smart contract network, Ethereum.
Accordingly, ADA-holding wallets quickly expanded from below the 1 million count in January 2021 to close to the 4 million threshold by September 2021.
Remarkably, the growth in Cardano addresses was reflected in the token’s market value. Specifically, ADA rose steadily and reached an all-time high of $3.1 in September 2021.
Even as the value of ADA commenced a downtrend from the peak, the number of Cardano wallets kept growing, though at a reduced space. However, it has lost momentum for further expansion since breaking the 4.45 million level in 2023.
During this period of stagnation, the Cardano development team has been preparing for the final phase of its roadmap, the Voltaire Era, which the Chang Hard Fork will introduce. This upgrade will effectively place the future development of Cardano in the hands of steadfast community members.
Why Cardano Faces Challenges Attracting New Users
However, despite the hype around the upgrade, the number of addresses holding Cardano has not increased significantly. In other words, Cardano has struggled to attract new users even as the blockchain is set to undergo what is expected to be the most significant change in its history.
IntoTheBlock observed that this trend is due to a shifting sentiment in the crypto scene, where market participants are gravitating toward blockchains like Solana and Base. Notably, these two platforms have become the outlets for launching meme coins, the leading narrative for this bull season.
Solana hosts billion-dollar-cap meme coins such as BONK and Dogwifhat (WIF), while Base is home to BRETT, which boasts a market cap of over $900 million. In contrast, Cardano’s meme coin, SNEK, has a market cap of only $54 million.
Yet, Cardano Processes $7.2B Daily.
Meanwhile, IntoTheBlock noted that despite the recent slowdown in new user adoption, Cardano’s active user base and transaction count have remained steady over the last four months.
The report also reveals that Cardano processes an impressive $7.2 billion daily on-chain transactions, outpacing many other networks. This results in a remarkably low NVT ratio of 2.62, which may suggest that ADA is undervalued.
Furthermore, the percentage of ADA tokens held by long-term investors has reached an all-time high, as they hold nearly 40% of the total supply. Essentially, this figure demonstrates a substantial level of confidence from ADA holders.