Cardano on the Rise Amidst Key Upgrades
In the world of cryptocurrencies, interest in and activity around the Cardano network has surged, as evidenced by a rise in transactions coupled with technical improvements and a growing developer interest. According to a report by analytics firm Messari, these metrics may well foreshadow an uptick in token prices.
Decentralized exchange Minswap led the pack in absolute growth, but several other new decentralized applications (dapps) were instrumental in this rise as well. Cardano’s increasing blockchain activity is notable not only in the value locked but also in terms of transactional metrics, with comparisons of data from Q2 to Q1 of the current year showing marked improvements.
Despite this flurry of activity and growth, there is a seemingly paradoxical dip in the number of active daily users by 4%, marking the fourth consecutive quarter of a decline in address activity. However, as the report clarified, the ratio of transactions to active addresses has in fact been on a steady rise for the past five quarters. This suggests that the average user is now more active than before.
Furthermore, looking at the blockchain load, which quantifies the data contained in blocks over a specific period, a notable increase has been charted from under 40% to 50%, peaking at an impressive 81% in May.
The engine driving this uptick in activity is likely the key upgrades that the Cardano network has undergone since early this year. For instance, a change implemented in June aimed to decrease epoch transitions and smoothen the blockchain experience for users. In addition, the provision for Cardano blockchain users to access Ethereum Virtual Machine (EVM) smart contracts was introduced in March via Milkomeda, a network bridging blockchains to the EVM.
Notably, this new feature has expanded the Cardano ecosystem’s utility by allowing Ethereum application developers to build on the Cardano network while sticking to Solidity, a computing language they’re familiar with. Applications built this way are compatible solely with Cardano tokens, elevating the tokens’ utility for holders.
In conclusion, the future looks promising for Cardano with a rising tide of activity and engagement following its strategic upgrades. These trends could potentially boost token prices, leading to a win-win situation for both developers and users. However, it’s also worth keeping an eye on whether the fall in active users could become a sticking point in the long run. Although present indicators posit increased activity per user, it remains to be seen how this dynamic will evolve in the future.
Source: Coindesk
