Cardano (HERE IS) has had an impressive start to the year, breaking the $ 1 psychological barrier and reaching an all – time high of $ 1.50. An impressive 590% year-on-year increase was due to the transformation of the network into a network with more assets, similar to Ethereum, and that could be a good sign for Cardan ‘s future.
The final stage of the rally appears to be related to the Coinbase Pro roster, which was announced on March 16, which led to renewed pressure at $ 1.47 on March 18.
As the price of Cardano increased, so did the volume of spot trading and on-chain transfers overcame litecoin (LTC). Increased investor interest also caused Cardano’s open interest in futures contracts to fivefold in 2021.
Make no mistake, breaking the $ 1 billion open interest rate barrier is a performance that only (BTC) and ether (ETH) have reached. In addition, Ether held an open interest rate of $ 2 billion just three months ago.
Therefore, in order to truly understand whether Cardano really deserves third place in the market capitalization rankings, it is necessary to compare its spot volume and metrics in the chain with other altcoins.
ADA trading volume and chain metrics are strengthening
Regardless of price movements, low trading activity reflects a small user base or a lack of new entrants. Therefore, the volume of Cardano could be expected to be among the top 5.
While this is promising, we should also look at metrics in the chain to understand whether futures open interest and spot volume reflect this network activity.
Daily active addresses provide a more detailed view of network usage. However, this data cannot be blindly trusted. The higher the fees, the less incentives to inflate the number.
Cardano definitely seems to be separate from other altcoins and reaches 85,000 active addresses per day. In addition, there do not appear to be any indication of fictional numbers, as its growth path appears to be organic and consistent with volume activity.
To confirm that these addresses were active, you must consider the transfers and transactions or the total value of the value that circulates efficiently in each network.
This time, Cardano’s strength is fully realized, with network daily transfers and transactions averaging $ 4.5 billion per day. This amount is at least six times higher than for the remaining competitors. ADA’s activities in the chain therefore provide some support for a market capitalization of $ 45 billion.
As can be seen in the chart above, the VORTECS skóre score recorded a maximum of 66 on March 16, twelve hours before the announcement of the Coinbase statement. The cryptocurrency then rose to $ 1.23, an 18% gain from the signal.
Volumes and data in the chain are important metrics, but Cardano may have a brief opportunity to take advantage of congestion on the Ethereum network. The cost of ADA can fall unless real use cases involving decentralized applications or interconnection bridges work to solve the problem of decentralized financial scaling.
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