Cardano Wallets Have Increased By 1348% In The Last Year, Surpassing The 3M Mark

•  On February 4th, it was discovered that three million ADA wallets were active upon that platform, up from a little over 200,000 at the beginning of 2021

• Cardano’s increase in popularity since late 2020 has been backed by key protocol changes, according to a report just provided by crypto exchange Kraken

• However, similar to Ethereum, this resulted in network congestion, with the blockchain load exceeding 90% at times. As a result, transactions took a long time to complete, and some were canceled entirely after submission

Following a period of widespread criticism for just a lack of growth, the Cardano system has begun to reclaim the headlines with more positive news. This is due to an increase in the number of smart contract-based apps being launched on the platform, as well as network-wide modifications.

On February 4th, It Was Discovered That Three Million Cardano Wallets Were Active On That Platform

This uptick in building work seems to have had a similar impact on the network activity, which has risen dramatically in recent weeks. On February 4th, it was discovered that three million ADA wallets were active upon that platform, up from a little over 200,000 at the beginning of 2021

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While this achievement is impressive, the actual evidence of Cardano’s recent success is a similar rise in its acceptance across several indicators.

Cardano’s increase in popularity since late 2020 has been backed by key protocol changes, according to a report just provided by crypto exchange Kraken. It’s worth noting that the Mary and Alonzo hard forks happened about this period. On the network, the latter introduced smart contract integration. According to Kraken’s analysis, there was a good correlation between price movement and transaction data up to November 2021, after which ADA’s price dropped even though daily transactions increased.

According to the research, this signals an optimistic narrative for ADA, because its value is now determined by more hype than by a network exodus. This price disparity has already been accompanied by the much-anticipated launch of Cardano dApps. This has resulted in an increase in network connections and daily transactions, despite the fact that the price of ADA has stayed relatively stable due to broader market sell-offs.

Last month, Cardano even managed to momentarily surpass Ethereum’s daily transaction volume, despite the fee remaining much lower than ETH.

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The Blockchain Load Exceeding 90% At Times

However, similar to Ethereum, this resulted in network congestion, with the blockchain load exceeding 90% at times. As a result, transactions took a long time to complete, and some were canceled entirely after submission.

However, it may not be necessary to be concerned about this occurrence because Cardano’s development arm, IOHK, has devised scaling methods for the system that will restore its throughput. In reality, the first move in that direction was already taken on February 4th, whenever the block size on-chain was raised by 11% to suit surging demand.