Cardano Records Massive Network Growth Despite Persisting Crypto Market Crash

Cardano (ADA) continues to record notable network growth since its Alonzo upgrade in September 2021. Recent reports show that the network added over 2,000 new holders every day for the last 30 days.

The notable network growth is measured by examining new features and updates, as well as buyer interest. Data from Cardano Blockchain Insights shows that the number of ADA holders jumped from 3,268,890 on April 19 to 3,339,101 on May 19, a total increase of 70,211. This means that the network added 2,340 new holders on average every day.

Meanwhile, Cardano whale transactions recently tapped a 4-month high as large accounts mop-up excess supply from the historic sell-off recorded last week. Reports show that Cardano whales recorded their most active session since January on May 13 after ADA slumped to $0.40 on May 12. The network saw 1,085 transactions exceeding $100,000 in value as retail and institutional interest soared.

The network also added more than 70 smart contract protocols in its first week after the update as developers onboarded the project. Cardano, currently the largest proof-of-stake (PoS) blockchain, added 283 Plutus scripts in 30 days, from 2,400 on April 8 to 2,683 on May 8.

The network is set to welcome its next hard fork event, Vasil, slated to occur next month.

Key Cardano Levels to Watch — May 20

As projected in my previous analysis, Cardano continues to record with a sideways bias between $0.600 – $0.500 as the crypto winter commences.

Currently, the cryptocurrency is on the verge of breaching the $0.500 support as the equities market resumed its downward spiral on Friday. A breach of the $0.500 support level could accelerate a retrace to the channel midpoint at $0.400, as bears keep their foot on the pedal.

That said, the possibility of a bullish turnaround or momentum in the near to medium term remains bleak as more central banks (like the ECB) adopt hawkish policy outlooks to curb rising global inflation.

Meanwhile, our resistance levels are $0.600, $0.700, and $0.800, and our support levels are $0.500, $0.400, and $0.300.

Total Market Capitalization: $1.24 trillion

Cardano Market Capitalization: $17.1 billion

Cardano Dominance: 1.38%

Market Rank: #8