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Cardano Ticks Positive in Net Network Growth as Active Users Spike 50% in 2022

Fri, 01/07/2022 - 13:05
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Tomiwabold Olajide
Cardano's net network growth turns positive following a 50% rise in active users since 2022 began
Cardano Ticks Positive in Net Network Growth as Active Users Spike 50% in 2022
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According to data from IntoTheBlock analytics, Cardano records a positive rise in net network growth signals as active users spike 50% since 2022 began.

IntoTheBlock
Cardano On-chain Signals, Source: IntoTheBlock

The net network growth indicated by IntoTheBlock provides a view of both user engagement and growth. In this regard, Cardano records a 51.53% rise in daily active addresses (DAA) in the past seven days—since the start of 2022.

IntoTheBlock
Daily Active Addresses (DAA), Source: IntoTheBlock

Daily Active Addresses (DAAs) are a useful way of tracking network activity over time as growing DAAs signal greater blockchain usage. As such, DAAs can often be a leading indicator for price action—demand for network usage might boost demand for the blockchain’s native token. However, Cardano's price is yet to reflect the latest growth in its network, with ADA mostly affected by the ongoing market sell-off.

At the time of publication, ADA is trading at $1.24, down 2.83% on the day.

Cardano network stronger amid 2021 achievements

The Cardano Foundation recalled rapid on-chain growth for 2021 in its end-of-year highlight report.

It states that the 23 million transaction mark was exceeded in December 2021, with the number of Cardano wallets reaching 2.58 million. The report gives an estimate of about 274 projects in development or actively running on the network and over 2.5 million native assets, with more than 2 million of these being non-fungible tokens (NFTs).

As for what to expect in 2022, it says, ''The year to come will see us move firstly into Basho and then into Voltaire.'' Basho aims to scale the network to billions of enterprise-grade transactions, while Voltaire will focus on growing governance on-chain.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.