Cardano Active Addresses Shoots To New Highs Amid Downtrend

Cardano’s active addresses have seen a substantial increase in the last few days. This is despite negative media surrounding the digital asset, including news from eToro (a mid-sized cryptocurrency exchange) denigring the altcoin to U.S. customers. This caused the asset to drop in price towards levels that were not reached for three months.

Investors had the opportunity to grab ADA at discounted rates before the anticipated rebound in cryptocurrency prices. Investor activity is up due to the expected release of DApps (decentralized applications) on blockchain.

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Active Cardano Addresses Hits New High

Cardano activity has increased significantly over the last few weeks. This is a inverse correlation with the value of the digital asset. The maximum number of addresses active was just slightly above 200k for much of 2018. This changed during the fourth quarter.

As the market price for ADA continued to rise, so did the number of active addresses. This number had risen to 80% by November’s end, a dramatic increase from the previous record.

chart showing trend of Cardano active addresses

 Source: IntoTheBlock| Source: IntoTheBlock

In October, the number reached its peak when it crossed 250,000. Mid-November saw the number surpass 250,000. However, it had since declined. As the active addresses climbed above 400,000, the momentum for recovery would be greater.

Increased Number of New Addresses

The increase in active addresses was not the only measure that showed a notable uptake. Data from IntoTheBlock indicates that Cardano also experienced an increase in new blockchain wallets. This pattern was almost identical to that of the active addresses and maintained strong correlation through November and October.

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In November alone, Cardano added over 100,000 wallet addresses to its network. The total reached a peak of around 300,000. This was a significant proportion of new addresses that were created after the value of digital assets dropped to below $2.

Cardano price chart from TradigView.com

ADA declines to a 3-month low. Source: ADAUSD from TradingView.com| Source: ADAUSD on TradingView.com

Despite the fact that ADA has been costly, network adoption is not slowing down. Investors are vocal in stating that their investment is for the future and not the short-term. This has been demonstrated by the last week.

Featured image taken from Finbold. Chart via TradingView.com

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