Cardano is struggling to grow its user base amidst increasing competition from new blockchain platforms like Solana and Base.
According to IntoTheBlock, the number of addresses holding ADA has remained steady at about 4.45 million for over a year, indicating stagnant growth.
Cardano’s number of addresses with a balance has hovered around 4.45 million for over a year. Here’s what’s going on👇
During the last cycle, Cardano experienced significant growth, positioned as a strong alternative to Ethereum. However, in the current cycle, the network faces… pic.twitter.com/WJrnAP8FQZ
— IntoTheBlock (@intotheblock) August 13, 2024
Despite significant price fluctuations, Cardano’s user base has shown resilience, with consistent address growth since mid-2021. However, recent trends show a shift of interest towards newer competitors, making it difficult for Cardano to attract new users.
The network continues to handle around $7.2 billion in daily transactions, suggesting robust activity despite these challenges. Cardano’s Network Value to Transactions (NVT) ratio is low at 2.62, which could imply that ADA is undervalued relative to its usage.
The percentage of ADA held by long-term investors is also strong, with 40% of the total supply in their hands, signaling ongoing confidence in the platform’s potential. Currently, ADA is priced at $0.336, holding a market cap of $12.07 billion.
In 2024, Binance saw significant gains in the prices of many memecoins listed on its platform, particularly following their debut on the exchange.
This week started off on a very bullish note with the whwole market being in the green and a lot of altcoins reaching new all-time highs (ATH).
Memecoins have been booming this year, especially those that are based on the Solana blockchain.
Ethereum’s recent price surge to around $3,200 has sparked significant activity among major investors, including Tron founder Justin Sun, who recently sold a portion of his holdings.