Cardano (ADA) still maintains its position in the top 10 largest market capitalization cryptocurrencies, despite signs of a slowdown in the market over the past week. However, an important on-chain metric has reached its highest level in over two years, reinforcing a positive outlook for ADA.

Catalysts driving growth

According to the latest data from IntoTheBlock (ITB), there has been an impressive increase in Cardano's network activity, with over 840,000 transactions recently recorded, generating total transaction fees of up to 279,000 ADA. This level of usage is comparable to that of March 2022, indicating a growing interest and application within the Cardano ecosystem.

Analyst C_THUMBS cites data from ITB and states:

"Previously, ADA was mainly regarded as a speculative asset. However, since July 2022, ADA has witnessed sustainable growth in the number of holders. This reflects an increasing confidence in the Cardano blockchain and ecosystem."

ADA is currently one of the best-performing cryptocurrencies in this price surge, reclaiming the $1 price point. Although it experienced a slight pullback over the past week, large ADA investors have purchased more than 130 million tokens, worth approximately $130 million.

ADA 1-Day Price Chart | Source: TradingView

This buying pressure has contributed to tightening the supply of ADA, which could push the value of this asset up if demand continues to be maintained or grow. These large transactions may also instill confidence in retail investors, encouraging them to participate in the market.

In the past month, ADA whales have accumulated an additional $10 million in token value, raising their position to 146%. This is a clear sign that large investors are increasing their presence and confidence in Cardano, which could create strong momentum for ADA's value in the future.

A significant milestone for the Cardano ecosystem

In terms of ecosystem development, Cardano recently reached an important milestone by successfully deploying the first zero-knowledge (ZK) smart contract, named Halo2, on the mainnet via the Plutus v3 ledger language. This is a significant step, opening up possibilities for zk applications and integration with partner chains, including Midnight.

On November 25, the Input-Output (IO) research team demonstrated the capabilities of Halo2 by successfully verifying the Ad-hoc Threshold Multi-signatures (ATMS) program on the mainnet. Specifically, the system validated 50 out of a total of 90 signatures, with transactions including a fee of 0.16 ADA to lock funds and 2.03 ADA to unlock after proof verification.

With notable developments in both network activity and technology, Cardano (ADA) is showing positive signals in its recovery and expansion journey. The increase in transaction volume and moves to strengthen the ecosystem, along with strong accumulation from large investors, all indicate that ADA has strong potential for continued growth in the near future.

Source: https://tapchibitcoin.io/hoat-dong-cua-mang-cardano-tiep-tuc-tang-manh-sau-khi-ada-lay-lai-muc-1-do-la.html