Cardano network activity on the rise, but will it be enough for ADA?

• Activity on the Cardano network has increased significantly in recent days.
• Interest in Cardano’s NFT sector has waned.

Cardano (ADA) is one of the leading networks that is constantly growing in terms of development activity.

Despite the high number of developments occurring on the Cardano network, it has failed to attract a large number of addresses to Cardano.

An increase in activity

However, in recent days, a surge of activity has been observed on the Cardano network. It was found that the number of daily active addresses on the network exceeded the 30,000 mark.

Along with the increase in active addresses, the number of transactions carried out on the network has also increased. However, the increase in active addresses was not as significant.

As of March 10, the number of active addresses on the network stood at over 60,000, double what it was at the time of writing.

A positive indicator of the good health of the Cardano ecosystem would be if the network sees the same level of activity over the next few days.

Source: Artemis

Due to the increasing activity on the Cardano network, the TVL (total value locked) on the protocol has also increased, implying that interest in Cardano’s DeFi sector has increased.

If Cardano can continue to attract users to its DeFi dApps, its ecosystem could have a chance for a renaissance.

Source: Artemis

Some challenges ahead

However, the decline in interest in the NFT sector could add some obstacle to Cardano’s recent growth.

AMBCrypto’s analysis of TapTools data revealed that the floor price of popular Cardano NFT collections such as EarthNode, Book.io, and The Ape Society saw a significant deduction.

Additionally, the volume at which these NFTs were trading also dropped significantly.

If Cardano’s growth is driven solely by its DeFi sector and other sectors such as NFTs are left behind, this could cause problems for its ecosystem in the long term.

Source: TapTools

Read Cardano (ADA) Price Prediction 2024-25

Even as interest in Cardano NFTs waned, interest in ADA remained high. Over the past week, the price of ADA has increased by 8.11%.

Additionally, the speed at which ADA was trading had also increased significantly during this period.

Source: Santiment