The number of wallets holding the Cardano blockchain's native token, ADA, has increased dramatically since the past year, as evidenced by the increase in the number of wallets holding the network's native token.
Cardano has grown by 1600% from December 2020, when there were 186,000 wallets, to the first quarter of 2022, when there are now approximately 3,200,000 wallets.
It is worth noting that, since the start of 2022, the total number of ADA wallets has climbed by almost 500,000, with Cardano passing the three million wallet mark earlier this year at the beginning of February.
The rapid expansion of the network has coincided with an increase in the number of wallets in Q1. U.Today previously reported on the 11 ways Cardano plans to scale in 2022, and these improvements have led to increased interest from investors, especially institutional investors, as the number of on-chain transactions exceeding $100,000 grew 50x in 2022.
Cardano is in the early stages of the Basho phase, to develop an efficient ecosystem to enable and stimulate the creation of decentralized applications (dApps). With smart contracts currently in place, Basho is all about scale and network optimization. The Hydra protocol family plays an important role in this. Hydra is a collection of Layer 2 solutions aimed at improving network security and scalability.
Cardano ecosystem and ADA price action
Cardano is seeing massive growth in the number of projects and on-chain activity. Nearly 900 projects are currently building on Cardano, with NFT marketplaces accounting for 3.6% and NFT collections representing a bigger chunk of 47.9%.
At the time of publication, ADA trades down 2% at $1.02, per CoinMarketCap, and is ranked the eighth largest cryptocurrency by market capitalization.