On-chain data shows that Cardano adoption is currently at its fastest pace since June 2023, which could be a bullish signal for the ADA price.
Cardano has recently seen an raise in the number of modern addresses
According to data from the market intelligence platform To the BlockThe ADA network has recently expanded. In this case, the critical on-chain metric is “New Addresses,” which tracks the daily total number of Cardano addresses that come online for the first time on the network.
An address is said to be “online” if it is engaged in some transactional activity. Therefore, modern addresses measure the number of ADA addresses that make their first transactions.
When the value of this indicator increases, it can be due to many reasons. Both modern investors joining the network and elderly investors who sold earlier and returned can contribute to the raise in the indicator. Existing users creating multiple wallets for purposes such as privacy also lead to the generation of modern addresses.
Generally speaking, whenever the indicator is rising, all of these factors play a role to some extent, so it can be assumed that some net adoption of the cryptocurrency is taking place.
Here is a chart showing the trend of modern addresses for Cardano over the last few years:
The value of the metric appears to have witnessed growth in recent days | Source: IntoTheBlock on X
As you can see in the chart above, the number of modern Cardano addresses has increased recently, which means that a gigantic number of addresses are being created on the network. In fact, the influx of users of this cryptocurrency is currently so gigantic that the indicator is at its highest point since June 2023, almost a year and a half ago.
Historically, adoption has proven to be something that has proven constructive for digital assets over the long term, as a broader user base provides a stronger foundation on which future price movements can be built. So the latest trend in Modern Addresses may also be an confident signal for ADA.
The raise in this indicator occurred after the asset’s price rose above the level of $1. Interestingly, despite the fact that the coin has seen a cooling off from such high levels over the past few days, Modern Addresses continues to maintain an upward trajectory.
Time will tell whether continued interest from modern investors will facilitate turn around Cardano’s fortunes in the near future, or whether this adoption will only bear fruit in the long run.
ADA price
Cardano saw a significant recovery to $0.91 as the entire digital asset sector saw declines. However, unlike some other top coins, ADA is still printing a significant gain of around 24% last week.
Looks like the price of the coin has been marching up for a while now | Source: ADAUSDT on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
