Emily Walker
Recent data indicates that Cardano is experiencing its most rapid growth in adoption since June 2023, suggesting a positive outlook for the price of ADA.
Increase in New Addresses for Cardano
As per insights from the market intelligence service IntoTheBlock, the Cardano network has been expanding. A key on-chain metric here is “New Addresses,” which tracks the number of brand-new Cardano addresses being activated daily.
An address is classified as ‘online’ when it engages in transaction activity. Therefore, the New Addresses metric gauges the first transactions made by new ADA addresses.
A rise in this metric can stem from various factors, such as new investors entering the network or previous holders returning after selling. Additionally, existing users may generate new addresses for reasons like privacy, contributing to the overall increase.
Typically, when this metric increases, it indicates a level of net cryptocurrency adoption, as all these factors interplay to some extent.
Below is a chart that illustrates the trend of New Addresses for Cardano over recent years:
The chart clearly shows a recent surge in New Addresses, indicating a substantial influx of users creating addresses on the network. The current interest is at its highest since June 2023, nearly a year and a half ago.
Historically, increased adoption has been beneficial for digital currencies, as a broader user base lays a stronger foundation for future price movements. Thus, the current rise in New Addresses could bode well for ADA.
This uptick in addresses coincides with the asset’s price rising above the $1 mark. Interestingly, although the price of ADA has cooled down slightly from this peak recently, the New Addresses count continues to rise.
Going forward, it will be interesting to see if this ongoing interest from new investors can positively impact Cardano in the short term, or if the benefits of this adoption will manifest over the longer term.
ADA Price Overview
Cardano’s price has retraced to around $0.91 amidst a market-wide decline in the digital asset sector. However, unlike some of its peers, ADA has still managed to report a significant weekly profit of approximately 24%.