Institutional Demand for Cardano (ADA) Soars 50x in 2022

Since the beginning of the year, Cardano (ADA) has seen a massive 50-fold spike in large transaction volume (LTV) and, according to crypto intelligence firm IntoTheBlock, this represents a significant increase in institutional demand for the decentralised blockchain network.

IntoTheBlock stated in a tweet that such high volumes – last seen in 2018 – indicate “increasing institutional demand”.

The volume of on-chain transactions over US$100k has increased remarkably in 2022 alone. This week, a total of 69.09 billion ADA, worth US$81.4 billion, was moved in these large transactions, representing 99 percent of total on-chain volume, according to the firm.

Large transactions on Cardano: IntoTheBlock

ADA Making Waves on Many Fronts

Cardano’s Total Value Locked (TVL) has also seen a significant increase since the beginning of the year when it started off. The chain’s slow academic approach has seen its token off to a low start but as new functionality is added, the chain becomes more secure and decentralised for users.

ADA TVL. Source: DefiLama

Since smart contracts were enabled on the chain in September 2021, many developers have started building in the ecosystem. Within the first five days of the upgrade, 2,334 smart contracts were deployed on the network.

Since 2021, the average amount of active addresses has also been steadily increasing. As of January 2022, the total addresses with a balance have increased from 3.4 million to 5.05 million, pointing to an exponential increase in usage.

Total ADA addresses. Source: IntoTheBlock

Cardano’s Layer 2 – Hydra also recently started looking into implementing a burning mechanism for the token, but this has caused confusion among some members of the community. With all the progress the chain has made, many are wondering how its price has managed to stagnate:

Robert Drage

Robert Drage

Robert is a freelance researcher, with a background in information science currently interested in blockchain technology and technical developments in the field.

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