4.6 Million Strong: Cardano Network Sees Massive Growth In New Wallets

Cardano (ADA) is making waves in the cryptocurrency market as on-chain data reveals a surge in wallet creation, signaling a growing adoption of the blockchain network. Over the past month, there has been a substantial increase in the number of new Cardano wallets being created, indicating a rising interest in the platform.

According to data from Cardano Blockchain Insights, there was an impressive jump of nearly 90% in wallet creation from 1,706 on February 22 to 3,227 on February 23. Although the growth rate has slightly slowed since then, the overall trend remains positive, with the total number of wallets approaching 4.6 million.

Source: LookerStudio

Diverse Investor Base Emerges On Cardano

The distribution of ADA holdings within the wallets reveals a diverse investor base on Cardano. While wallets with 10 to 1,000 ADA experienced a slight drop, particularly those with 100 to 1,000 ADA, which saw a 0.54% loss, larger investors saw an increase in their holdings. Wallets with between 1 million and 10 million ADA displayed a rise of 1.01%, while those with 10 million to 100 million ADA witnessed an even more notable growth of 2.14%.

This diversified investor base suggests that Cardano is attracting both small-scale and large-scale investors who are actively adjusting their holdings in response to market conditions. The ability of Cardano to cater to investors with varying investment sizes strengthens its position in the market and fosters a robust ecosystem.

ADA market cap currently at $22 billion. Chart: TradingView.com

Long-Term Holders, Potential Price Impact

Data analysis from IntoTheBlock indicates that a significant number of ADA tokens have been held in wallets for over a year. A staggering 3 million tokens have been held by long-term holders, highlighting their confidence in the potential of Cardano. Additionally, 1.23 million tokens have been held for one to twelve months, while 231,550 tokens have been held for less than a month.

The prevalence of long-term holders suggests that investors are committed to Cardano for the long haul, which could have a favorable impact on the price of ADA. As more investors demonstrate their belief in the platform and its future prospects, it creates a strong foundation for sustained growth.

With the addition of 4.6 million new wallets, the Cardano network is experiencing significant growth, indicating a rising interest in its potential. This surge suggests that Cardano is attracting a wider user base and establishing itself as a prominent player in the blockchain landscape.

The TD Sequential indicator shows a sell signal on the #Cardano 3-day chart. It’s important to note that the last two times this indicator signaled bearish, $ADA experienced a price correction!

If you’re planning to join me in this trade, go to @coinexcom, and sign up using my… pic.twitter.com/huu01fFcrL

— Ali (@ali_charts) February 23, 2024

Correction On The Horizon?

Meanwhile, in a recent X post, analyst Ali Martinez expressed his pessimistic opinion that ADA was probably about to undergo a correction.

TD Sequential is a technical analysis tool that generates indications for trading opportunities by identifying overbought or oversold conditions. According to Ali’s study, ADA may be about to enter a decline after its recent surge, but it will take time to determine the exact result.

Although the price trend hasn’t altered significantly on the higher time periods he mentioned, the climb observed since then may render this option incorrect.

Featured image from Pexels, chart from TradingView