The adoption of the Cardano (ADA) network has reached a plateau, with no significant increase in its user base over the past year. According to data from IntoTheBlock, the number of Cardano addresses with a balance greater than zero has been relatively stable over the past year.
This suggests that the Cardano network has faced challenges in attracting new users following the bear market in 2022. The lack of progress is related to the original perception that Cardano was a strong alternative to Ethereum, which led to its early adoption.
Nevertheless, investors have progressively shifted their focus towards alternative blockchain networks like as Solana and Base. These networks have garnered significant interest and investment, potentially overshadowing Cardano.
Although there has been a lack of progress, Cardano’s ability to withstand challenges is clearly apparent. Since April, the network has consistently maintained a stable number of daily active addresses, which suggests that it has a dedicated and engaged user base.
The sustained involvement of the Cardano community, despite the absence of substantial new user expansion, is an encouraging indication of the network’s durability. Furthermore, Cardano has been efficiently managing a significant number of daily transactions, giving it an advantage over other blockchain networks.
The rise in holding conviction among Cardano investors indicates that a substantial proportion of ADA investors are dedicated to retaining their holdings for an extended period, rather than engaging in frequent trading or selling.
These characteristics suggest that although there is a lack of growth in new users, Cardano nevertheless maintains a loyal user base that actively backs the network.
Nevertheless, the network has persistent obstacles, namely due to increasing rivalry in the blockchain industry. With an increasing number of investors exploring numerous options, Cardano must distinguish itself and devise strategies to appeal to a wider range of people.
The lack of growth in Cardano’s number of holders is a worrisome sign, indicating that Cardano may be losing its competitive advantage in the quickly changing cryptocurrency industry.
