Cardano Ecosystem Posts Strong Performance Despite ADA Price Weakness

06.07.2024 / Payment system news

Input Output Global (IOG), the firm behind Cardano’s network development, has unveiled its latest weekly update, showcasing robust performance metrics despite recent fluctuations in ADA’s market value.

The report, posted on Friday, highlighted substantial advancements across various facets of the Cardano ecosystem, underscoring its resilience and growth amid market challenges.

According to IOG’s latest disclosures, Cardano has experienced notable growth in key operational metrics over the past week. Total transactions on the network reached 93.3 million, a modest increase from the previous week’s 92.9 million.

The ecosystem also witnessed a significant uptick in native tokens, with their number surging to 10.17 million, an increase of 40,000 tokens within the span of seven days. Similarly, token policies on Cardano rose from 136,594 to 141,712, reflecting a 3.74% increase weekly. Despite this growth, adding only one new project brought the total number of projects building on Cardano to 1,365.

According to the report, one of the notable updates is the integration of 2,970 Plutus scripts into the network, further enhancing Cardano’s capabilities. This brings the total number of Plutus scripts to 64,248, reinforcing the platform’s development in smart contract functionality.

Beyond statistical achievements, IOG provided insights into ongoing developmental efforts across various teams. The Ledger team made strides in constraint generator testing and updated Alonzo UTXO specifications, enhancing the platform’s security and operational efficiency. Additionally, the Lace team’s updates to the wallet infrastructure promise enhanced user experiences in crypto storage.

The Mithril team also made progress in certifying Cardano transactions, marking a significant step toward scalability and reliability, which are crucial for broader adoption and utility. Meanwhile, in matters of governance, the team delivered solutions to key voting app issues, reinforcing Cardano’s commitment to transparency and effective governance in the Voltaire era.

Despite this progress, ADA experienced a significant decline this week, which is in line with a broader crypto market downturn. Over the past week, ADA has lost over 10% of its value, exacerbated by fears of massive Bitcoin selloffs on Friday.

However, despite this decline, ADA’s fundamentals remain strong. Data from crypto analytics firm IntoTheBlock reveals that 75% of ADA holders are currently at a loss. Historically, this has often been followed by substantial buying activity.

The firm’s data also reveals that approximately 70% of ADA holders have held their assets for over a year, around 26% for 1-12 months, and only 4% for less than 30 days. This suggests that many ADA holders demonstrate a long-term commitment to the network.

Additionally, the ADA community remains optimistic about the upcoming Chang hard fork, which could enhance the network’s appeal and potentially boost ADA’s price.

At press time, ADA was trading at $0.358, reflecting a 2.69% surge over the past 24 hours, following recovery after crashing by roughly 12% earlier on Friday.