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If Ethereum had not completed its transition to PoS, Cardano would have been the largest PoS layer1 solution in terms of market value. Cardano, which gained smart contract capabilities by the end of 2021, has not experienced the expected growth so far. There are many reasons for this, and we have discussed each of them in the long-term outlook. Now let’s take a look at the current short and medium-term view.
Cardano (ADA)
Cardano (ADA) is struggling to maintain its support level due to the negative trend in other cryptocurrencies. On-chain data shows that investors are increasing their position sizes. Following Ripple‘s positive victory against the SEC, Cardano (ADA) price has gained double-digit gains to reclaim $0.35. On the other hand, we see that ADA trading volumes have reached new highs in the past 3 months on the on-chain front.
Despite the turbulent price movements in recent months and widespread regulatory FUD, Cardano has continued to experience stable growth in transaction activities. On-chain data provided by Santiment shows that on July 20th, it reached a 3-month Transaction Volume peak of 12.16 billion ADA. This is 19% and 30% higher than the previous monthly peaks of 10.61 billion and 9.77 billion ADA recorded in May and June 2023, respectively.
Transaction Volume measures the real-time changes in economic activity level conducted by users on a blockchain. An increase in transaction volume can be attributed to an increasing demand for the native token of the network.
ADA Coin Analysis
Although ADA Coin did not achieve significant gains last week, whale investors continue to hold onto their assets. Santiment reported that crypto whales holding between 10 million and 100 million ADA have kept their balances relatively stable since June 20th. The upcoming launch of the Hydra Pay product and potential relisting by several top exchanges indicate that Cardano’s transaction volumes could reach new highs in the coming months.
This could mean a price climb back to the $0.5-0.6 range after the levels of $0.38 and $0.4. The decision on XRP Coin could enable exchanges to list altcoins that have been stamped as securities again. This would be a good price catalyst.
