Cardano (ADA) has been making waves in the cryptocurrency market recently, with on-chain data pointing towards a potential breakthrough in price levels in the near future. The creation of new wallets on the Cardano blockchain has shown significant spikes on various days since the beginning of February, indicating a possible influx of new investments into the ecosystem. According to on-chain data analysis, new addresses on the Cardano network experienced an 89% surge between February 22 and February 23. This substantial increase was preceded by a massive 248% jump earlier in the month between February 1 and February 2.
When assessing the adoption rate of cryptocurrencies, one of the key factors to consider is the number of new wallets being created. The data reveals that the number of new wallets added to the Cardano blockchain surged from 1,706 on February 22 to 3,227 on February 23. Similarly, there was a significant spike from 1,553 on February 1 to 5,414 on February 2. Although the daily creation of new wallets has somewhat slowed down since February 23, it has consistently remained above 1,500 since the beginning of the month. The total number of wallets registered on the Cardano network is steadily climbing and is approaching 4.6 million addresses.
The number of active daily addresses on the Cardano network has been on the rise, surpassing 30,000 since the beginning of the year and peaking at 64,568 on February 16. This surge in activity indicates a growing interest in the Cardano ecosystem, with more individuals looking to acquire the native ADA token. The heightened demand for ADA could potentially drive up its price, prompting many ADA holders to speculate whether the token could revisit its all-time high above $3.1 this year.
After trading in the range of $0.60 last week, ADA has broken through the $0.62 mark following a 6.99% increase in the broader crypto market. Presently, Cardano is trading at $0.6211, reflecting a 6.23% gain in the past 24 hours and a 29.85% increase over the past 30 days. However, the road back to ADA’s all-time high of $3.1 poses a challenge, as the token must overcome various price resistances. The initial hurdle is to establish a significant foothold above $0.63, with the potential to surge past $0.66 for the first time since December 2023. Sustaining above $0.66 could pave the way for ADA to reach $1.20, a crucial point where many long-term holders (529,000 addresses) may consider selling to break even.
The on-chain data and adoption growth trends point towards a promising future for Cardano (ADA). The increased interest in the ecosystem, reflected in the surge of new wallets and active addresses, suggests a growing demand for the ADA token. While the path to reclaiming its all-time high presents challenges, the positive momentum in the market indicates a potential rise in price levels for ADA. Investors and traders alike will be closely monitoring the developments in the Cardano ecosystem to capitalize on the anticipated growth in the coming weeks and months.
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