The Cardano network reached a new milestone of over five million addresses functioning on the network with a year-to-date increase of 48%.
The strong increase in the number of users correlates with the rising number of dApps and solutions on the network, showing the fundamental growth of the network.
Back in March 2021, the number of addresses on the Cardano network totaled around 2.6 million. By comparing both TVL and the number of holders metric, we can clearly see the spike in the number of addresses with the release of smart contracts technology for Cardano.
Decentralized apps and solutions push Cardano further
Thanks to high demand for decentralized finance, Cardano could get a "second wind" in terms of development and fundamental growth. We can clearly see the dynamic before the announcement of the new disruptive technology as the price of underlying coin ADA barely moved since the bullrun of 2017.
After the release of the new technology powered by Cardano, ADA rallied by almost 200% in around a month. But the announcement's effect on the price was mostly speculative, which made ADA a heavily overbought asset. As the imbalance between sell and buy orders appeared, the market could not cover the selling pressure, which sent the asset tumbling down to new lows.
Since the announcement of smart contracts, ADA dropped by over 70%. But thanks to the growing number of decentralized solutions and apps on the network, it could regain over 40% in the last weeks of trading.
At press time, ADA trades at $1.14 after reaching the local top of $1.25.