Cardano Welcomes Over 250K Wallets Amid ADA Price Struggles

• Cardano has been consistently welcoming new users to its network every day. 
• The Proof-of-Stake chain managed to add new wallets even in the face of unfavorable market conditions. 
• However, while wallets on Cardano remain on the rise, one on-chain metric has revealed a worrying pattern. 

August has been a rollercoaster month for Cardano as ADA persistently slips through the cracks and into the depths. Since the start of the month, the asset has plummeted by over 30% and could potentially maintain its downward momentum towards the yearly lows. 

However, despite the chaotic market conditions and heightened investor frustration, Cardano’s user base continues to grow, with the network welcoming new users every day, proving that it’s unfazed by the turbulence. 

Cardano Welcomes New Wallets

While ADA’s lackluster price performance has taken many investors by surprise, the network’s on-chain data has revealed some interesting trends. Data aggregator Cardano Blockchain Insights recently shared that the number of new unique wallet addresses on the network has substantially increased since April, growing by 260,000 wallets, marking a 6% total increase. 

For over five months, Cardano has consistently welcomed over 1,600 new wallets every day, per reports. This trend persisted even during unfavorable market conditions, including August and June, which were widely considered one of the most challenging months for ADA’s price performance. 

Despite the chaos, total wallets on Cardano expanded by over 30,000 in August, reaching a total of 4.26 million, proving that the crypto sphere was still attracted to the Proof-of-Stake chain. 

However, while wallets on Cardano remain on the rise, the Daily Active Address metric revealed a worrying pattern in the network’s activity. According to Santiment, Daily Active Addresses on the network have plunged from their peak of 105,000 to 32,000 at press time, marking an alarming 70% decrease and signaling an investor exodus. 

Making matters worse was ADA’s ongoing downtrend, as the token struggles to find solid ground amid dwindling volumes and prices. At the time of writing, Cardano exchanged hands at $0.256, exhibiting a bearish outlook as it leaned toward the yearly lows. With ADA continuing to underwhelm, Cardano’s daily active addresses could take another hit, resulting in many investors exiting out of frustration.

On the Flipside

• It’s worth noting that ADA is 92% down from its all-time high of $3.1 at press time.
• Recent Santiment data named Cardano the industry’s top dev platform at press time, eclipsing competitors Polkadot and Kusama.
• Charles Hoskinson recently stated that Cardano is poised to surpass Bitcoin and Ethereum because he believes it has higher scalability and interoperability. 

Why This Matters

The increase in wallets proves that the crypto sphere is bullish on Cardano’s long-term prospects despite the market’s uncertain conditions. Should the Proof-of-Stake network maintain its growth, it is poised to surpass its most established rivals like Bitcoin and Ethereum. 

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