Cardano News: Network Activity is Rising! 1$ Soon?

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.

Cardano Whale Activity Surges

Market intelligence platform IntoTheBlock revealed that Cardano whales—those holding between 100 million and 1 billion ADA—have added 11% more ADA to their holdings over the past 30 days. This group of large investors now controls 6.71% of the total ADA supply.

The increase in whale holdings is often seen as a precursor to a price rally. Large-scale purchases by these investors can lead to significant price movements, indicating bullish sentiment around ADA.

A Rise in Activity

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.
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.

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.

Even though interest in Cardano NFTs was waning, the interest in ADA had remained high. Over the past week, the price of ADA grew by 8.11%.

Additionally, the velocity at which ADA was trading had also grown significantly during this period.

Can Cardano Reach $1 Soon?

The prospect of Cardano's ADA reaching $1 in the near future has been a topic of much discussion. While the surge in network activity and DeFi growth are positive, several factors will determine if ADA can hit $1 soon.

Overall market sentiment, increased adoption, upcoming upgrades like Vasil hard fork etc. could propel ADA higher if successful. However, crypto is volatile, so unforeseen events could impede this path.

Investors should monitor Cardano's ecosystem closely, along with broader market forces, to gauge if the $1 milestone is achievable for ADA in the near term.

Current ADA Market Status

At the time of writing, Cardano's native cryptocurrency ADA is trading at $0.4678, with a 24-hour price change of 2.75%.

ADA is the 10th largest crypto with a $16.7 billion market cap. 24-hour trading volume is $252.7 million, with a volume/market cap ratio of 1.50%.

Conclusion

While the surge in Cardano whale activity and growing DeFi sector present promising signs for ADA's future, the lack of momentum in its NFT space poses challenges for balanced ecosystem growth. As investors keenly watch broader market forces alongside Cardano's developments, the project's ability to sustain this upswing will likely determine if the $1 milestone is achievable for ADA in the near term. Ultimately, Cardano's revival hopes hinge on its capability to drive comprehensive adoption across all sectors of its blockchain.