Cardano’s Surging Transaction Volume Contrasts with Subdued Market Value

Latest data by Santiment shows rising on-chain transaction volume and sustained interest in Cardano’s DeFi ecosystem.

Despite recently experiencing a decline in value, with its price dropping by approximately 17% over the last month, the on-chain activity of Cardano’s native token has defied expectations and shown a surge in transaction volume.

According to the latest data by Santiment, Cardano’s transaction volume has surged by 1,700% since late January, which is noteworthy given the contrast with its subdued market value compared to its April peak. Data also suggests that discussions and engagement rates surrounding ADA indicate that trader interest in the crypto asset remains unfazed by the depreciation in its price.

In a statement, Santiment said, “Cardano is still seeing rising #onchain transaction volume despite its suppressed market value compared to its April local top. Utility plays an important role in any bounce, and this combined with adequate $ADA social dominance, is still promising.”

📈 .@Cardano is still seeing rising #onchain transaction volume despite its suppressed market value compared to its April local top. Utility plays an important role in any bounce, and this combined with adequate $ADA social dominance, is still promising. https://t.co/EbGxIN8wFd pic.twitter.com/Y9SRtbXLFq

— Santiment (@santimentfeed) September 4, 2023

In terms of developer activity, Cardano even surpassed several prominent projects in August, including Hedera, Chainlink, and Cosmos. This increased level of activity is indicative of a commitment to innovation and potential improvements in the network’s capabilities.

On the NFT front as well, Cardano has been picking up steam as its NFT floor price skyrocketed, even briefly exceeding Ethereum, which has been a dominant ecosystem. Meanwhile, the network holds a total value locked (TVL) of around $150 million, according to data from DeFiLlama, representing a substantial increase of nearly 200% since January 2023.

While the rising TVL does signal sustained interest in Cardano’s DeFi ecosystem, the decentralized exchange (DEX) volumes on the network declined over the past month. Nonetheless, the surging transaction volume and sustained interest in Cardano’s DeFi ecosystem suggest that the network continues to show promise despite the recent decline in its market value.