Cardano (ADA) remains a standout among major networks, showing consistent growth in development activity. Despite the flurry of developments on the Cardano network, it initially struggled to attract many addresses. However, a recent resurgence in activity has been observed. Over the past few days, the number of daily active addresses on the network has surged past 30,000.
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Rising Volume Transaction
The volume of transactions on the Cardano network also rose alongside the increase in active addresses, although the increase was less pronounced. On March 10th, the number of active addresses on the network soared to more than 60,000—double the number reported at the time of this writing.
A sustained level of activity similar to what has been seen recently would be a strong indicator of a healthy Cardano ecosystem. With the spike in network activity, the total value locked (TVL) in Cardano's protocol also significantly increased, signalling a growing interest in the company’s decentralized finance (DeFi) sector. Should Cardano continue to draw users to its DeFi applications, the ecosystem could be poised for a robust revival.
Challenges Ahead
However, diminishing interest in the NFT sector might challenge Cardano's recent growth trajectory. AMBCrypto's analysis, based on TapTools' data, showed a notable decrease in the floor prices of popular Cardano NFT collections such as EarthNode, Book.io, and The Ape Society. Additionally, the trading volume of these NFTs also saw a significant drop.
If Cardano's growth continues to rely predominantly on its DeFi sector while other areas, like NFTs, lag, this imbalance could disrupt the ecosystem's stability in the long term. Despite the declining interest in Cardano's NFTs, enthusiasm for ADA has remained robust. Over the past week, ADA's price increased by 8.11%, and its trading velocity also significantly increased during this period.
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