Crypto exchange Kraken says that two on-chain metrics measuring demand for digital assets suggest a bullish outlook for Cardano (ADA).
In its March 2022 crypto on-chain digest, Kraken says that ADA’s transaction fees, the cost that market participants are willing to pay to use the blockchain, rose by over 50% year-to-date.
ADA’s transaction fee is rising amid a general decline in the transaction fees of other major crypto assets including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Tezos (XTZ).
“ADA transaction fees have risen about +51,5% from $0.33/tx to $0.5/tx year-to-date. In March alone, ADA fees rose +37%”
The Adjustment Settlement Value, which represents the US dollar value of the total amount of crypto assets transferred on-chain during a particular period, also indicates rising network demand for Cardano in 2022.
“On-chain indicators suggest ADA prospects are bright as demand is on the rise. The 7-day moving average of ADA’s adjusted transfer value volume rose an astronomical +2,472% from $2.5B to $64.3B. Moreover, ADA’s transfer volume jumped nearly +186% from $22.5B in the last 30 days alone. This increase in on-chain demand coincides with ADA’s rise in transaction fees.”
ADA did not perform well in other metrics, though. Cardano is the worst performer in terms of active addresses in March with a 20% decrease in network activities. The crypto asset also shed 9% in monthly active supply, the most significant drop compared with other coins.
Cardano’s market cap also plunged by 6.6% despite an across-the-board increase in the market value of crypto assets.
ADA is worth $1.06 at time of writing.
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