Crypto Update: Cardano (ADA) Sees Soaring On-Chain Activity Amid Market Volatility

Crypto Update: Cardano (ADA) Sees Soaring On-Chain Activity Amid Market Volatility

Crypto News – In spite of declining market values, Cardano’s on-chain transaction volumes have consistently surged to unprecedented levels. In a recent tweet, the on-chain data analytics platform Santiment revealed that Cardano (ADA) is currently witnessing a substantial increase in on-chain transaction activity.

The tweet highlights that this surge in on-chain activity has occurred even as ADA’s market price has remained relatively suppressed compared to its five-month high, last reached in April.

Notably, Santiment’s analytics platform reports a remarkable 1726 percent increase in Cardano’s weekly on-chain transaction volumes between January and September 2023.

Discussion Rates, a market sentiment indicator used to gauge sentiment and interest in a cryptocurrency asset, also reflects the growing enthusiasm for the Cardano blockchain and its ecosystem. According to Santiment, Cardano’s discussion rates have risen from 1.19 to 1.65 percent, indicating a clear uptick in trader interest.

This surge in on-chain activity and growing interest in Cardano’s ecosystem coincide with the expanding Cardano DeFi (decentralized finance) landscape, which includes the increasing adoption of next-generation platforms like MinSwap, Liqwid, Indigo, and MuesliSwap.

Cardano bulls are actively working to reclaim the high point of August 2023, at $0.3027, which ADA/USD briefly touched at the beginning of the previous month. Toward the end of August, buyers attempted to drive prices higher, leading to a strong uptrend from $0.2600 to $0.2803.

However, a significant sell-off at the $0.2803 level resulted in a sharp downtrend at the start of the current month, thwarting Cardano’s efforts to surpass the $0.3000 mark. Over the past few days into the new month, Cardano’s market value has appeared to trade within a narrow range, as depicted in the chart below.

In the last 24 hours, Cardano’s price ranged between an intraday low of $0.2547 and an intraday high of $0.2594.

Despite the relatively modest gains in recent weeks, on-chain analytics continue to indicate sustained holding (HODLING) by large whale investors. For instance, whales accumulated over $150 million worth of ADA coins in their wallets between July and August 7th. This accumulation could have contributed to the surge in ADA’s price to $0.3027 in August.

However, the sale of over 100 million ADA coins during the second week of August may have fueled the subsequent sharp downward price movement. Consequently, the direction of Cardano’s next price action remains uncertain as on-chain transaction volumes continue to surge.