Cardano Continues to Post Record High On-chain Transaction Volumes

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Cardano Continues to Post Record High On-chain Transaction Volumes
  • Cardano (ADA) price at $0.25 could be undervalued given rising on-chain activity.
  • Santiment Data shows Cardano (ADA)’s increasing on-chain transactions.
  • ADA’s discussion Rates indicate rising trader interest.

Despite lower lows, Cardano’s on-chain transaction volumes have continued to surge to new higher levels. In a recent tweet, on-chain data analytics platform Santiment shared that Cardano (ADA) is experiencing significant on-chain transaction volumes.

According to the tweet, the recent uptick in on-chain activity comes on the heels of ADA’s suppressed market price compared to its 5-month high, which was last tested in April.

In particular, the analytics platform mentioned that Cardano’s weekly on-chain transaction volumes have increased by 1726 percent between January and September 2023.

Discussion Rates, a market sentiment indicator for evaluating the attitude and mood towards a cryptocurrency asset also reflect the growing interest in the Cardano Blockchain and its ecosystem.

According to Santiment, Cardano’s discussion rates increased from 1.19 to 1.65 per cent. As such, this is a good indicator of rising trader interest.

Meanwhile, this development comes on the background of increasing interest in the Cardano DEFI ecosystem comprising growing adoption of next-generation platforms like MinSwap, Liqwid, Indigo and MuesliSwap.

Cardano Bulls are striving to regain the August 2023 high at $0.3027 which ADA/USD tested around the start of last month. Towards the close of August, the buyers attempted to rally upwards with a strong uptrend from $0.2600 to $0.2803.

However, massive selling at $0.2803 resulted in a strong downtrend by the start of this month, thereby halting Cardano’s attempt to cross $0.3000.  The last few days into the beginning of the new month, Cardano’s suppressed market value seems to be trading within a narrow range as shown on the chart below:

Cardano/USDT 1-Day price chart (Source:TradingView)

Today’s 24-hour chart traded between an intraday low of $0.2547 and an intraday high of $0.2594.

Despite ADA’s narrow gains over the last weeks, on-chain analytics also indicate continued HODLING by whale investors. For instance, Whales accumulated over $150 million in ADA coins in their wallets between July and August 7. This could have catalyzed the August surge to $0.3027.

However, the selling of over 100 million ADA coins into the second week of August might have fueled the strong rally downwards. Meanwhile, we are yet to see the direction of Cardano’s next price action as on-chain transactions surge in volumes.

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