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Cardano’s On-Chain Activity Increases As It Becomes The Sixth Largest Cryptocurrency

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  • Over the past five days, the price of ADA has gone up by more than 35%.
  • Since May 15, the number of activity on blockchain has nearly tripled.

Over the past few days, the crypto market seemed to be breaking out of the downtrend it had been in for weeks. ADA, the native token of the Cardano blockchain, got a lot of attention when the market started to look up again.

At the time of writing, the token was worth $0.56. In the last five days, it has gone up by more than 35%. Due to this price rise, ADA has passed XRP (of Ripple) to become the sixth-largest cryptocurrency by market capitalization. With the Vasil Hard Fork coming up next month, there is a lot more work being done on the Cardano ecosystem.

Data from Santiment shows that development activity has been going up quickly since the middle of May. At the time this was written, the metric was at 149, which was almost three times what it was on May 15. This metric takes into account all of the changes that developers push to the project’s GitHub repository. So, this metric shows how committed a project is to making a product that works and constantly improving and polishing its features.

Source: Santiment

It’s common for whales to buy a lot of coins when the price drops, but on-chain data from Santiment shows that ADA whales are buying even when prices are high. In the chart below, transactions worth more than $100,000 (shown in yellow) and more than $1 million (shown in red) show a group of spikes (indicated in red).

Source: Santiment

The number of active addresses on the network has also grown a lot. On May 31, there were 103,000 daily active addresses, which is more than 30% more than on May 28. This means that people on the market are rushing to exchanges to buy ADA because prices have recently gone up and they expect more gains.

Source: Santiment

Based on the on-chain data and development activity, the short-term price movement of ADA seems likely to go up. But investors should keep in mind that after the sharp rise, the token may take a break. So, they should be patient and take into account the break, as well as the size of their positions.