The latest analysis conducted by IntoTheBlock suggests that Cardano, a blockchain network, is experiencing several positive trends in its on-chain metrics. The examination of transaction count, transaction volume, and addresses in profit among other factors highlights the network’s progress throughout 2023.

Steady Transaction Count and Increasing Transaction Volume

The report’s key highlight emphasizes the notable performance of Cardano’s transaction count and transaction volume. Despite the ongoing bear market, the Cardano transaction count has demonstrated relative stability, with a remarkable 33.5% increase from its yearly lows in mid-April.

Similarly, the transaction volume has showcased an upward trend since the beginning of the year, resulting in a year-to-date surge of 205%. This translates to over 26 billion ADA being transacted daily. Notably, the recent surge in daily transaction volume reached a three-month high, with 98,000 transactions occurring in a single day.

Addresses in Profit and Price Expectations

Examining addresses in profit reveals that 22% of users are currently in profit, while 5% are breaking even. However, the majority, accounting for 73%, are holding losses at the current price. Despite the significant decline in ADA’s price from its all-time high of $3.10 in August 2021, many users continue to hold their positions, anticipating a future price revival.

The research platform concludes that ADA token holders, despite facing recent capitulation, remain resilient and hopeful for a price increase in the future.

Whale Accumulation and Netflow

The analysis also explores netflow from large holders, indicating a substantial increase in inflows over the past 30 days, with a staggering +1,510% surge. This suggests a significant accumulation of ADA by whales, indicating their confidence in the network. The majority of activity in this regard is associated with inflows.

The Impact of Hydra and Positive On-Chain Metrics

IntoTheBlock mentions the recent release of Hydra, a layer 2 scaling solution for Cardano. While not expecting an immediate impact, the platform believes Hydra holds the potential to enhance the network’s performance. Hydra enables developers to create mini-blockchains, known as heads, for processing data off-chain. This innovative solution improves processing time and alleviates the load on the main chain.

In conclusion, the analysis of Cardano’s on-chain metrics highlights positive trends, particularly the stable transaction count, rising transaction volume, and significant whale accumulation. Despite the challenges faced by ADA holders in recent times, the overall sentiment remains optimistic, with anticipation of a future price increase. With the release of Hydra, Cardano’s network has the potential to further solidify its position in the blockchain ecosystem.