Cardano Active Addresses Shoots To New Highs Amid Downtrend
Cardano has recorded a significant uptick in active addresses in recent days. This comes despite the negative news that has surrounded the digital asset following news of mid-sized crypto exchange eToro demising the altcoin for U.S. users. This has sent the price of the asset barreling downwards towards points that had not been touched in the past three months.
The downtrend in the cryptocurrency had opened up an opportunity for investors to snatch up ADA at discounted prices before the expected bounce back. In addition to expected releases of decentralized applications (DApps) on the blockchain, activity has ramped up among investors.
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Active Cardano Addresses Hits New High
Activity on Cardano has gone up significantly in just the past few weeks, showing an inversely correlated pattern with the price of the digital asset. The number of active addresses had maintained just a little above 200K as the peak for most of the year. However, this changed in the fourth quarter of the year.
As the price of ADA had taken hit after hit in the market, the number of active addresses had shot up in the meantime. Towards the end of November, this number had surged drastically as the number grew about 80% from its previous all-time high.
Cardano active addresses hits new all-time high | Source: IntoTheBlock
The number had hit its highest point back in October when the number of active Cardano addresses broke towards 250,000. Then in mid-November, the number had broken through 250,000 but had subsequently declined. The recovery from this point would prove to be even more momentum as the number of active addresses had broken above 400,000 for the first time ever.
Number Of New Addresses Surge
Active addresses were not the only metric that saw a significant uptick. Data from IntoTheBlock shows that Cardano also saw an increase in the number of new wallets on the blockchain. It followed basically the same pattern as the number of active addresses, maintaining a strong correlation all through October and November.
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Over 100,000 new wallet addresses were added to the Cardano network in the month of November, eventually peaking at approximately 300,000. A significant percentage of these new addresses were added after the price of the digital asset had dropped below $2.
ADA falls to three-month low | Source: ADAUSD on TradingView.com
Despite the price of ADA suffering, adoption has not slowed down on the network. Investors have always been vocal about their investments being towards the future of the project and not for the short-term and have demonstrated this in the past week.
Featured image from Finbold, chart from TradingView.com