Cardano has continued to emerge as a strong contender in the cryptocurrency space, albeit the sector faces regulatory headwinds. This growth has been fueled by increasing retail investors showing their faith in the network’s potential.
According to data from on-chain analytics firm IntoTheBlock, 66% of all ADA supply is now held by retail investors. This is a significant increase from just a year ago when the number was just under 40%.
“This shows a strong belief in the asset and its growth potential,” the firm wrote in an April 2 tweet.
One of the most appealing factors for retail investors to Cardano has been its growing ecosystem of applications. Cardano developers have been working on improving the functionality and scalability of the blockchain, making it more attractive for developers to build decentralized applications (dApps). So far, over 1000 dApps and over 4 million ADA wallets are being created on Cardano, fueling the network’s demand further.
Additionally, over the years, Cardano has transformed into a robust smart contract platform that allows for the creation of DApps for various DeFi use cases, such as lending, borrowing, and trading. Last week, Cardano developers announced an upcoming feature on Milkomeda (Cardano’s EVM layer) that will allow users to gain access to Ethereum virtual machine smart contracts with any ADA wallet, expanding Cardano’s uses.
Cardano has also experienced considerable demand for staking. While staking has always been there for ADA, Ethereum’s dive into Proof of stake (POS) led to exploding demand for staking services. Nevertheless, it seems that Cardano has continued to lure more holders than Ethereum.
On April 3, Charles Hoskinson, the founder of the Cardano, took to Twitter to share a chart showing that the number of unique wallets participating in staking exceeded those of Ethereum considerably. He further lauded Cardano as “pretty special”, adding, “It’s almost like a lot of people thought about how to build an excellent staking protocol years ago and made it happen.”
That said, as more investors continue to take notice of Cardano’s potential, ADA’s price is poised to surge. In the past month, Cardano whales holding 1 to 10 million ADA have already bought roughly 150 million ADA worth $57 million, as per data from IntoTheBlock.
Technically, after surging roughly 30% in March, ADA faces strong resistance around $0.42. On-chain data has shown that a colossal $3.85 billion ADA sell wall stands between $0.40 & $0.42. This means slicing through this barrier may spark a bull rally for ADA, as it faces minimal resistance beyond.
At press time, ADA was trading at $0.39, up 8.20% in the past 7 days, as per data from CoinMarketCap.