Cardano network activity on the rise, but will it be enough for ADA?

Ayush May 19, 2024

Activity on the Cardano network surged significantly over the last few days.
Interest in Cardano’s NFT sector waned.

Cardano [ADA] has been one of the major networks that has been consistently growing in terms of development activity.

Despite the high number of developments occurring on the Cardano network, it failed to attract a large number of addresses to Cardano.

A rise in activity

However, in the last few days, there was a resurgence in activity observed on the Cardano network. It was seen that the number of daily active addresses on the network has grown above the 30,000 mark.

Coupled with the rise in active addresses, the number of transactions occurring on the network also grew. However, the surge in active addresses wasn’t as significant.

On the 10th of March, the number of active addresses on the network had soared to more than 60,000, double what they were at the time of writing.

A positive indicator of the Cardano ecosystem being healthy would be if the network sees the same amount of activity in the next few days.

Source: Artemis

Due to the rising activity on the Cardano network, the TVL (total value locked) on the protocol also surged, implying that interest in Cardano’s DeFi sector had grown.

If Cardano can continue to attract users to its DeFi dApps, its ecosystem could have a shot at a revival.

Source: Artemis

Some challenges ahead

However, the waning interest in the NFT sector may add some hindrance to Cardano’s recent growth.

AMBCrypto’s analysis of TapTools’ data revealed that the floor price of popular Cardano NFT collections such as EarthNode, Book.io and The Ape Society witnessed a significant deduction.

Moreover, the volume at which these NFTs were trading also plummeted materially.

If Cardano’s growth is driven solely by its DeFi sector and other sectors such as NFTs get left behind, it may cause problems for its ecosystem in the long run.