Despite innovations, number of active ADA addresses continues to fall
Freshly launched Cardano blockchain explorer eUTxO has received praise from blockchain founder Charles Hoskinson, a well-known crypto enthusiast and entrepreneur. Hoskinson called eUTxO, whose beta version was released on June 25, a “really cool project” that deserves funding from Catalyst, an inner Cardano accelerator that supports tech start-ups and projects built or centered on blockchain. eUTxO was built on a volunteer basis by Cardano community member and developer Peter Oraveс.
I would love to see this get some Catalyst funding: https://t.co/967haOagQ0 really cool project
— Charles Hoskinson (@IOHK_Charles) June 27, 2022
However, despite innovations and the active involvement of the community in the development and implementation of Cardano-based projects, the company is experiencing problems on another front. So, according to analytics from Santiment, Cardano’s address activity has sunk to year-low levels, with overall sentiment back to negativity levels last seen four months ago, in February.
Analyzing the given data, we can see how the number of active addresses on the Cardano network has dropped multiple times compared to its local peak in January 2022. During the first month of the year, the number of active addresses increased by 130%, from 125,000 to 286,000 addresses. Nevertheless, subsequently the number of active Cardano addresses decreased relentlessly. By the end of June, there are only 64,000 active Cardano addresses, which is more than four times lower than the January highs.
Such a dramatic decrease in the number of active addresses is worrying because it is an important indicator for determining the number of users on the blockchain, taking into account both senders and receivers of assets. Thus, we can say that activity on the Cardano network is very much in decline, and fewer and fewer people are using the blockchain and its products. At this rate, the eUTxO explorer will be unnecessary, because there will simply be nothing to explore.