Cardano (ADA), a popular cryptocurrency, has seen its user base stagnate over the past year. This means that the number of people holding ADA hasn’t increased significantly.
Why is Cardano’s Adoption Stalling?
According to IntoTheBlock, an analytics firm, Cardano’s growth in user base slowed down during the 2022 bear market and has completely flatlined since then. This suggests that new investors are no longer interested in the network.
During the 2021 bull run, Cardano was seen as a strong alternative to Ethereum. However, investors are now attracted to other networks like Solana and Base.
Is There Any Good News?
Despite the lack of new users, Cardano has seen a stable number of daily active addresses since April. This means that the number of people using the network daily hasn’t changed much.
IntoTheBlock explains that this indicates a “committed community that continues to engage with the protocol.”
Cardano also processes a high daily volume of $7.2 billion, which is more than many other networks. Additionally, many Cardano investors are holding onto their ADA, with nearly 40% of the supply remaining untouched for over a year.
What’s Next for Cardano?
While the lack of new users is a concern, the stable daily active addresses and high transaction volume suggest that Cardano still has a strong community.
It remains to be seen whether Cardano can attract new users and regain its momentum.
