After an influx of positive fundamental catalysts pertaining to Cardano, the growth in the price of ADA has slowed over the past few days, with the asset consolidating around $0.085. This is approximately a dozen percent below the local highs of $0.095.
While some have seen the consolidation as a sign that the cryptocurrency is poised to roll over to the downside, the fundamentals of ADA and the underlying blockchain are still strong.
Cardano’s bullish on-chain fundamentals: more addresses are holding ADA than ever before
While the price of ADA has sunk dramatically since the all-time high prices above $1.00, the cryptocurrency has seen increasing adoption as of late.
Blockchain analytics firm IntoTheBlock reported on Jun. 6 that more Cardano addresses are holding ADA than ever before, with the metric reaching 385,080 addresses late last week. This count has seen near consistent growth since the 2018 bubble, according to the firm’s data.
“Cardano, or the so-called ‘Ethereum Killer’ is looking sharp as the Shelley protocol transition is fast approaching. The total number of addresses holding ADA reached its ATH on June 3, with 385.08 thousand addresses.”
A growing number of individuals holding a cryptocurrency suggests adoption and the fact that coins are becoming less concentrated, leaving the hands of whales for more retail users.
This isn’t the only positive on-chain signal that IntoTheBlock has registered for Cardano.
As reported by CryptoSlate previously, the firm reported that the surge in the price of ADA was likely fueled by “large investors.”
$7 billion worth of the cryptocurrency, which is more than 300 percent of its market capitalization, was transacted by large-size ADA holders on May 31 alone — 1,700 percent higher that of the day prior.
Furthermore, three of the company’s seven core metrics — Net Network Growth, Smart Price, and the Bid/Ask Volume Imbalance — are currently “bullish,” adding to Cardano’s bull case.
Three of the other four metrics are “neutral” while the last one, Large Transactions, is “bearish.”
The hype around Shelly grows
The increase in Cardano’s on-chain strength is in line with developments in the launch sequence for Cardano’s Shelly upgrade, which is basically its Ethereum 2.0 moment.
In launching Shelly, the blockchain will see a strong increase in speed, with Cardano founder Charles Hoskinson saying that the network will reach a point where it can process 1,000 transactions per second, basically eclipsing any other leading decentralized network currently in use.
In the coming week, the testnet will be open to all stake pool operators, bringing Shelly closer to a full-fledged launch.