Cardano (ADA) Shows Strong Momentum with Rising On-Chain and DeFi Activity

Crypto Cardano. (Photo; Doc. Elevenews)

JAKARTA - The crypto market is currently undergoing broader consolidation, but traders' views are now turning to Cardano (ADA) which seems to be building strong momentum in the near future.

Analysis of on-chain data reveals that large holders of ADA coins are accumulating the asset at the highest level in almost a year.

Cardano's current price hovers around 0.29 US dollars (IDR 4,410), and on-chain data from information provider Santiment shows a significant accumulation of large holders holding assets ranging from 100k to 10 million ADA coins. This is the largest accumulation since September 2022. In addition, activity on the Cardano network has increased consistently over the last six months.

According to a report from blockchain analytics company Messari, Cardano blockchain activity has skyrocketed during the second quarter. The "State of Cardano" report published last month notes that the ratio of transactions to active addresses has steadily grown over the last five quarters, indicating higher levels of user engagement. In the second quarter, the ratio of Active Transactions/Addresses reached 1.19, an increase of 6.1 percent from the previous quarter and 13.2 percent from the previous year.

Not only that, the DApp (Decentralized Applications) and DeFi (Decentralized Finance) ecosystems at Cardano are also experiencing notable growth. Minswap decentralized exchange is experiencing significant growth, while other decentralized applications are also contributing to this positive trend, as per Messari's report.

However, with this growth, there has also been an increased load on the Cardano blockchain. Blockchain load, which measures how much data a block contains over a period of time, has increased to 50% from around 40% in the last three months. This increase reached its highest peak at 81 percent in May.

Data from DefiLlama also revealed that there were $175 million worth of tokens locked in the Cardano ecosystem as of Monday, reaching the highest level of the year. Nonetheless, this figure is still around 50% lower than the highest peak reached in May 2022, which is around 340 million US dollars (IDR 5.1 trillion).

Important changes have also been implemented by Cardano developers in June, with the aim of improving blockchain performance for users. The "epoch" concept spanning 432,000 slots, with each slot equivalent to one second, underwent changes that reduced the "epoch" transition in the Cardano ecosystem.

The question that is currently sticking out is whether the ADA price will succeed in surpassing the 0.30 US dollar (IDR 4,564) mark and continue the upward trend going forward. With the high accumulation of coins, the growth of activity on-chain and in the DeFi sector, and the changes implemented in the Cardano ecosystem, the eyes of the crypto world will be interested in watching the next developments.