Cardano Blockchain Witnesses Major Spike in Adjusted On-Chain Volume Amid Market Volatility
Despite recent weakness in ADA’s market price, the Cardano blockchain has demonstrated remarkable resilience, marked by a sharp increase in adjusted on-chain volume. This surge comes at a time when the broader cryptocurrency market is experiencing heightened volatility, underscoring Cardano’s growing role within the ecosystem.
According to analytics shared by TapTools, Cardano processed over $6 billion in adjusted on-chain volume as of Thursday—representing a more than 21% increase in a short period. This substantial uptick in transaction volume reflects a renewed wave of network usage, driven by both speculative trading and long-term investment behavior.
Interestingly, this growth in volume occurred even as the number of active addresses on the network slightly declined. The total active addresses fell to approximately 21,930—a 2.71% drop. This suggests a shift in user engagement, where fewer participants are responsible for higher transaction volumes, potentially indicating that institutional participants and whales are playing a larger role in network activity.
Supporting this theory, data reveals that the top 100 ADA holders now control 29.04% of the total supply. Additionally, the Net Unrealized Profit and Loss (NUPL) metric sits at a modest 0.05, suggesting that ADA investors are in a relatively neutral profit position, not overwhelmingly in profit or loss.
Further breakdown of supply distribution shows that 48% of short-term holders (STH) are currently engaging in distribution, compared to 52% among long-term holders (LTH). This relatively balanced distribution hints at a transitional market phase, where both short- and long-term investors are adjusting their positions based on shifting sentiment.
One of the most notable developments is the increased institutional interest in ADA, particularly from major U.S.-based exchange Coinbase. The platform has significantly boosted its wrapped ADA holdings (cbADA), acquiring over 9.56 million ADA within a month. This brings their total holdings to 17.48 million ADA—an 83% rise—highlighting growing confidence in Cardano’s long-term potential.
In parallel, ADA’s open interest on Coinbase has climbed to $2.2 million. Open interest refers to the total number of outstanding derivative contracts, such as futures or options, and its rise typically signals increased market participation and investor interest. This trend further reinforces the view that ADA is gaining traction among serious market players.
While ADA’s price has hovered around the $0.60 mark, analysts suggest that price action may not fully reflect the underlying strength of the network. Historically, spikes in on-chain metrics like adjusted volume and open interest have preceded significant price movements, indicating that a potential rebound could be on the horizon if momentum continues to build.
Beyond the metrics, Cardano has been making quiet but significant strides in development and adoption. The network’s push toward scalability, smart contract functionality, and enterprise-grade solutions has put it in a favorable position compared to competitors. Its focus on peer-reviewed research and formal development processes has earned it a reputation for being one of the most technically rigorous blockchains in the space.
Additionally, Cardano’s ongoing efforts to expand into new domains—such as its initiative to gain control over top-level domains—signal a broader vision that goes beyond decentralized finance. This strategy aims to integrate blockchain technology more deeply into the fabric of the internet, potentially unlocking new use cases and user bases in the future.
In response to the growing demand, the Cardano Foundation has also ramped up its community engagement and ecosystem development programs. These initiatives aim to drive more developers and users to the platform, fostering innovation and long-term sustainability.
Whale activity has also been a key driver behind ADA’s current market dynamics. Large holders have continued to accumulate even during bearish phases, indicating strong conviction in the asset’s future. If history is any guide, such accumulation phases often precede major bullish rallies.
As market sentiment remains mixed, ADA’s fundamentals appear to be strengthening beneath the surface. The divergence between price action and on-chain activity suggests that the token may be undervalued relative to its current utility and adoption.
Looking forward, if network activity remains elevated and institutional interest continues to rise, Cardano could be poised for a significant breakout. While short-term volatility is likely to persist, the broader picture points toward increasing usage, decentralization, and long-term value creation.
For investors and observers alike, Cardano’s recent performance serves as a reminder that in the world of blockchain, price is only one piece of the puzzle. Underlying network activity, user behavior, and institutional participation often provide deeper insights into a project’s real momentum and potential.