Cardano's 90% Growth in On-Chain Transactions Sparks Debate

Cardano's On-Chain Activity Surge

Cardano's network recently reported a significant increase in on-chain transactions, with activity growing by 90%. This surge is attributed to transactions from Cardano's NFT platform, Cardanoland. Despite skepticism from Ethereum enthusiasts, data indicates a consistent rise in various on-chain activities, including wallet delegators and new ADA wallet creations.

Addressing Skepticism and Misunderstandings

Some critiques suggest that the growth is misleading, arguing that many ADA delegators receive staking rewards without being actively involved in transactions. They emphasize that staking rewards do not equate to actual transactions and should not be counted as total locked value (TVL).

Market Reactions and Price Movements

Despite the increase in network activity, Cardano's native ADA has not seen a positive price movement. The coin recently experienced a decline, trading at $0.3125 with a 5% drop over the past week. This disconnect between network activity and price performance raises questions within the crypto community.

Comparative Network Activity

In a broader context, other blockchains such as Fantom, Arbitrum, and Optimism have also seen an uptick in active addresses. However, their combined on-chain activities remain lower than those of the BNB Chain, which boasts 1.2 million active addresses daily. Notably, Arbitrum and Optimism are major layer-two (L2) solutions that enhance Ethereum's scalability through Optimistic roll-up technology.

The ongoing discussions around Cardano's growth highlight the complexity and varied dynamics of blockchain networks, underscoring the need for clarity in interpreting on-chain data and its implications for market trends.