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Active Addresses of Cardano Shoots to New Heights in the midst of a Downtrend

Active Addresses of Cardano Shoots to New Heights in the midst of a Downtrend

Cardano's active addresses have increased significantly in the last several days. Although the digital asset has been plagued by bad press due to the news that mid-sized crypto exchange eToro had delisted the altcoin for U.S. customers, this positive development has come about despite the news. Thus, the asset's value has plummeted to levels not seen in the past three months, sending the price spiraling down.

As a result of the cryptocurrency's recent decline, investors now have a window of opportunity to buy ADA at a discount before the anticipated price recovery. Additionally, the activity of investors has risen sharply as a result of DApps being released.

Cardano in Action: Hits are Addressed Cardano's New High Activity has increased dramatically in the last several weeks, demonstrating an inversely connected pattern with the digital asset's price. For the majority of the year, the total number of active addresses remained just above 200K. In the final three months of the year, things began to shift.

The number of active ADA addresses has risen as the price of ADA has taken a beating on the market. Late last month, this number had risen dramatically as it increased by approximately 80 percent from its previous all-time high.

In October, the number of active Cardano addresses surpassed 250,000 for the first time. Then, in mid-November, the total had passed 250,000, but had since fallen back down. With more than 400,000 active addresses, the recovery from this point on would prove to have even more momentum.

Number Of New Addresses Surge

Active addresses were not the only measure that witnessed a large spike. Cardano's blockchain has seen a surge in the number of new wallets, according to data from IntoTheBlock. During the months of October and November, it maintained a strong link with the number of active addresses.

In November alone, the Cardano network gained over 100,000 new wallet addresses, eventually reaching a peak of almost 300,000. Following a price cut to under $2, a large number of these new addresses were created.

ADA's adoption has not slowed despite the price's decline on the network. In the past week, investors have proved their commitment to the long-term success of the project by increasing their stakes in the company.

To put it another way, Cardano, which was introduced in 2017, is being touted as the third-generation blockchain, following in the footsteps of the first and second-generation platforms Bitcoin and Ethereum. Cardano coin claims to be a more scalable, secure, and efficient alternative to Ethereum and other decentralized application platforms.

Dapps, or decentralized applications, are programs that run on a computer or mobile device rather than on a centralized server. Because dapps are self-contained, there is no need for a middleman to keep them running in the background. Smart contracts, which are computer programs designed to fulfill a certain function when certain preset criteria are met, are used to achieve this autonomy.

Dapps like this can be built that allow anyone to borrow money if they put a particular amount of collateral in the wallet prior to the loan. When the collateral wallet receives the correct quantity of cash, a smart contract will transmit a loan transaction to the borrower immediately. If the borrower fails to pay back the loan on time, the smart contract can be programmed to release the collateral (the money that have been locked up).

It claims to be the first peer-reviewed blockchain platform in the industry, and it frequently publishes academic research papers on its website.

Cardano's Block Size Has Been Increased

  • Cardano announced earlier this month that it would be increasing the block size by 12.5 percent in order to accommodate the anticipated increase in traffic on its network. More transactions may now be stored in a single block thanks to the 8KB increase, making the total block size 72KB. A higher data flow and more transactions per second can be achieved as a result, which in turn increases the system's overall capacity.
  • Cardano only had 10,000 transactions per day on average a year ago. After a year, this number has climbed to over 200,000 and is still rising. Although a 12.5 percent increase in block size may not seem like a lot on the average, it is necessary to deal with this increased usage.

Another reason for increasing the block size is the anticipated deployment of DApps on the blockchain in the near future. It's only a matter of time before developers start launching their apps on Cardano, because it already has smart contracts capacity. Increased traffic has necessitated an increase in block size, which is critical for the network.

Memory of the Plutus Script is boosted.

It wasn't just block size that saw an increase. Cardano has also raised the number of Plutus script memory units in each transaction. Plutus script memory units per transaction have increased by 12.5% to 11.25 million.

It was noted in a blog post by Cardano Architecture Director John Woods that this move was brought about by an increase in developer interest. DApps on Cardano will benefit from this when they are tested and deployed.

Woods points out that this is just the beginning of a series of enhancements aimed at enhancing Plutus scripts' real-world capabilities.

There will be a gradual implementation of the adjustments in block size and Plutus script memory units through transactions. Cardano has decided to proceed with the adjustments in a "slow and steady" manner. In spite of the fact that this may appear to be moving too slowly for some, the developer is not rushing to make modifications that could harm the network.

More sophisticated scripts aren't all that matters." According to a blog post, "It's also about putting more data through."