On-chain data shows the adoption of Cardano is now happening at the fastest pace since June 2023, a sign that could be bullish for ADA’s price.
Cardano Has Registered An Uptick In New Addresses Recently
According to data from the market intelligence platform IntoTheBlock, the ADA network has been growing recently. The on-chain metric of relevance here is the “New Addresses,” which keeps track of the daily total amount of Cardano addresses that are coming online on the chain for the first time.
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An address is said to be ‘online’ on the network when it participates in some kind of transaction activity. As such, the New Addresses measure the number of ADA addresses that make their very first transactions.
When the value of this metric surges, it can be due to a number of reasons. New investors joining the network and old ones who had sold earlier returning can both contribute to a rise for the indicator. Existing users creating multiple wallets for a purpose like privacy also lead to new address generation.
In general, whenever the indicator goes up, all of these factors are at play to a degree, so some net adoption of the cryptocurrency could be assumed to be taking place.
Now, here is a chart that shows the trend in the New Addresses for Cardano over the last few years:
The value of the metric appears to have witnessed growth in recent days | Source: IntoTheBlock on X
As is visible in the above graph, the Cardano New Addresses have seen a jump recently, which implies a large number of addresses are being created on the network. In fact, the influx of users is currently so high for the cryptocurrency that the indicator is sitting at the highest point since June 2023, almost a year and a half ago.
Historically, adoption has been something that has proven to be constructive for digital assets in the long term, as a wider user base provides a stronger foundation on which future price moves can build on. Thus, the latest trend in the New Addresses could also be an optimistic sign for ADA.
The rise in the metric has come as the asset’s price has witnessed a rally beyond the $1 mark. Interestingly, despite the fact that the coin has seen a cooldown from this high in the last few days, the New Addresses has still maintained its upward trajectory.
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It now remains to be seen whether this continued interest from new investors would help turn Cardano around in the near future, or if this adoption will only bear fruit in the long term.
ADA Price
Cardano has seen a significant retrace to the $0.91 level as the digital asset sector as a whole has suffered a drawdown. Unlike some of the other top coins, though, ADA is still printing a significant profit of around 24% for the past week.
Looks like the price of the coin has been marching up for a while now | Source: ADAUSDT on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com