According to recent analysis by on-chain analytics firm IntoTheBlock, Cardano has achieved a remarkable milestone. The network handles approximately $7.2 billion in on-chain volume daily. This substantial figure places Cardano ahead of many blockchain networks, underscoring its utility and activity.
Low NVT Ratio Suggests ADA May Be Undervalued
Cardano’s Network Value to Transaction (NVT) ratio, a crucial metric for evaluating a cryptocurrency’s value, stands at a remarkably low 2.62. This ratio, calculated by dividing market capitalization by transferred volume, suggests ADA might be trading below its true market value.
A low NVT ratio usually signals undervaluation, suggesting that ADA might be priced below its true value. Currently, Cardano’s native cryptocurrency, ADA, trades at $0.334. Currently, ADA’s price is significantly lower than Ethereum’s $2,637 and Solana’s $145. ADA remains down 89.2% from its peak of $3.10, achieved in September 2021.
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Despite this downturn, ADA did not reach a new all-time high during this year’s market surge, which saw Bitcoin peak at approximately $74,000 in mid-March. Nevertheless, the percentage of ADA held by long-term holders has reached an all-time high of around 40% of the total supply. This trend reflects strong confidence among ADA holders.
Stable Transactions Amidst Decrease in New Users
Despite facing challenges in attracting new users, Cardano maintains stable transaction counts. The number of addresses with a balance has remained steady at around 4.45 million for over a year.
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Although new user growth has slowed, Cardano’s transaction volume and active user base have remained consistent since April. This stability indicates that the community continues to engage actively with the protocol, even as interest shifts towards other platforms like Solana and Base.
While Cardano shows impressive on-chain volume and a strong commitment from long-term holders, it struggles with slower new user growth. The low NVT ratio hints at potential undervaluation of ADA, presenting an interesting opportunity for investors.
