ADA’s surging transaction volume indicates that more institutions are getting involved with the asset.
IntoTheBlock – a blockchain intelligence firm – has reported a surge in interest for Cardano among institutional buyers. It cites a parabolic 50x increase in the cryptocurrency’s on-chain transactions worth over $100,000 in 2022 alone.
As tweeted by the firm yesterday, over 69 billion ADA were moved as part of such large transactions just yesterday. They represented over 99% of the total on-chain volume for Cardano.
That’s compared to just 1.35 billion ADA in trading volume on January 1st, representing a 51-fold increase since. This is one of the highest volume levels ADA has seen since mid-2018.
The cryptocurrency’s volume is still reportedly around $1.4 billion according to exchange data, providing more evidence that these transactions are happening OTC.
ADA’s price has also benefited strongly following the recent crypto market surge, up 20.7% versus Bitcoin’s 11%.
Furthermore, total addresses on Cardano have expanded from 3.5 million to 5 million since the start of the year. Meanwhile, other coins like Shiba Inu are seeing a decline in addresses holding a balance.
That said, other metrics like average transaction size remain stagnant, alongside Cardano’s popularity in DeFi. While the $300 million locked in its DeFi protocols is up massively since the start of the year, it’s still dwarfed by Ethereum’s current $126 billion.
Charles Hoskinson – co-founder of Cardano – says that many more DeFi protocols will come to the network after a hard fork this year. On Monday, he spoke about the importance of maintaining coordination and decentralization in crypto during Binance Blockchain Week in Dubai.
“There are two paths before us,” he said, citing one path of “integrity” and “decentralization,” as opposed to another of high centralization and “custodians”.
Andrew is content writer with a passion for Bitcoin. He became familiar with Bitcoin back in 2013, but began diligently studying the blockchain technology and its economic implications in 2017. Ever since, he’s believed in the network’s power to replace the current global monetary system, and provide financial freedom to billions worldwide.
Contact: Medium | LinkedIn | Twitter