Activity on the Cardano network is on the rise

The Cardano (ADA) network has been showing strong signs in recent months on chain see data. Decentralized finance (DeFi) protocols are increasingly popular and transaction volume has also increased significantly in recent months.

The Impact of the Hydra Update on the network

The chart below is dates sourced from DeFiLama. It is clear to see that both the total value locked (TVL) as the total transaction volume on the network increases. It is striking that around the period from May 2023 the numbers started to grow considerably faster. This may have to do with the hydra update that went live at the time. Hydra is one layer 2 solution with the aim of making the network more efficient.

The TVL seems on track to break the 600 million incarcerated ADA soon. This number is much higher than about a year ago. The network then had a long period in which the TVL value remained around 200 million ADA. Perhaps even more impressive is the massive increase in transaction volume. This number jumped abruptly from May to more than 60 million ADA, a clear sign that the network is in demand. Tempers have now calmed down and the number is currently around 20 million, which is still a lot higher than we have seen in all of 2022.

Figure: Cardano network TVL and transaction volume (DeFiLama)

SEC indictment results in ADA heading

Cardano was recently used by the American Securities and Exchange Commission (SEC) classified as a security along with other altcoins. Shortly afterwards, sharp price drops resulted and the digital currency had to be removed from prominent American platforms such as Robinhood, eToro and Revolut. The ADA price is showing some recovery but is still not past its peak of earlier this year. The low price and at the same time strong on-chain data are a possible indication of a good buying opportunity.

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