Cardano Smashes 20 Million Transaction Mark: Bullish ADA Reversal Coming?
While ADA continues its downtrend, the Cardano network reached its 20 million transaction mark, and activity on the blockchain is seeing a steady increase.
As reported by Reddit user Jem_Colley, Cardano broke the milestone all without seeing a single moment in downtime. Cardano’s blockchain has been up and running for 1,533 days, while some of its competitors have seen outages.
According to data from blockchain-tracker Messari, active addresses on Cardano have also seen a sudden surge during the current market correction. Ever since late October, active addresses have climbed from around 96,000 per day up to a high of 485,000 on Monday, November 22nd.
Currently, Cardano is entering the “Basho” phase of its roadmap. Basho, which comes after Goguen and before Voltaire, is the era that focuses on optimization, scalability, and interoperability of the network. It also emphasizes the need for sidechain connected to Cardano, and higher transaction capacity. With this in mind, Cardano development firm Input Output Hong Kong (IOHK) announced last week that they would be increasing the block size in order in anticipation for higher activity.
“There are now well over 2 million Cardano wallets in use and traffic has grown by over 20 times in a year (from less than 10,000 transactions per day in November 2020 to over 200,000 transactions per day. Because of the anticipated rise in traffic as developers roll out new DApps, the block size is quickly becoming a key consideration. Larger block sizes mean that more transactions can fit into a block, thus providing greater capacity for users. Being able to fit 12.5% more transactions into a block is significant, as it means that we’re processing more transactions per second or we argue – a more useful metric – greater data throughput.”
Cardano’s seemingly solid fundamentals conflict against its bearish price action, potentially presenting opportunities for ADA bulls looking for discounts. ADA is currently more than 50% down from its all-time highs, and well below both the 20 and 50-day moving averages.
Crypto analyst and Cardano bull Dan Gambardello said that from his point of view, the worst of ADA's correction is behind us given that its relative strength index (RSI) is now at the same level as it was at the bottom of the 2018 bear market.
"Cardano is approaching oversold on the weekly at levels it was at in the bear market low of 2018. Only this time, instead of $.02, ADA is $1.50, after a 50% dip!
It’s crazy to me that some are choosing now to become bearish on ADA."
Analyst Benjamin Cowen also said in a a recent video that Cardano needs to get above the $1.90-$2.00 level in order to resume its bull trend. He's looking for a little more activity in the ecosystem to help spark some more positive sentiment in Cardano.
"It's below the 20-week moving average, so we have a lot of work to do, I think a lot of people are sort of waiting to see what's going to happen in Cardano eco system after we get more DApps and what not to launch. But look, it's a waiting game, I think it will come through clutch but we still have a little ways to go."
At the time of writing, ADA is trading at $1.58.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.