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Cardano Adoption Statistics— Data Shows Continued Interest Among Large Investors

Last updated 24th May 2022
Disclosure

2021 saw a lot happening in the crypto space. Non-fungible Tokens(NFTs), Metaverse, Web 3.0, DeFi, and the incredible bull runs all put a spotlight on the crypto market. One of the greatest beneficiaries of all this was Cardano (ADA), a crypto project comparable to Ethereum.

Cardano is a project that aims to create a nexus for changemakers, visionaries, and innovators. The platform arms users with tools and technologies to discover and create solutions via the limitless possibilities on the blockchain. It supports NFT, DeFi, and Metaverse projects.

Despite only being launched in 2017, it has already grown in popularity. It is currently among the top 10 cryptocurrencies globally. The project has won over many crypto enthusiasts by creating a wholesome solution that makes it possible to impact many facets of life.

The Google trends report for 2021 shows that Cardano’s based searches were rapidly rising. This happens typically when crypto enthusiasts believe in a coin’s potential.

The report shows increased Cardano interest, as tracked by search volume in the Netherlands, Ireland, and Australia.

Data from a crypto stats tracking publisher shows some interesting stats about Cardano adoption:

  • Large-scale investors hold 10% of ADA. This means that retail investors hold a considerable amount of ADA.

  • There are three large-scale investors (Whales) who hold more than 1% of the circulating ADA supply.

  • Cumulatively, the three whales hold about $2.6 billion worth of ADA. This translates to 3.91% of the ADA’s circulating supply.

  • There are about 27 wallet addresses that hold between 0.1 to 1% of the circulating supply of ADA. These wallets hold 6.31% of ADA’s circulating supply.

  • 90% of the trading activity for ADA consisted of investors trading and holding 0.1% of ADA’s circulating supply. This mostly represents the retail segment.

  • ADA holding has increased by 40% in 2022.

According to data from Coinmarketcap, ADA currently has a live market cap of about $27.1 billion and ranks 8th on the market.

  • ADA has a 1.55% market dominance which is sizable for a cryptocurrency that is less than five years old.

Other noteworthy stats include:

  • 76% of ADA holders have bought the crypto within the last 12 months.

  • About 15% of ADA holders have bought the coin within 30 days.

  • Only 9% have held ADA for more than one year.

Here are some February 2022 on-chain statistics:

  • There were 32.9 million ADA transactions, a rise of 11.87% from January.

  • The number of wallets holding ADA increased by 4.3% to 3.12 million wallets.

  • The number of long-term holders grew by 32.1% to 408,000. This is higher than in January at 10.9% and 5.78% in December 2021.

  • This indicates an increased number of holders.

  • The number of traders on the network dropped by 25% to 770,000.

  • The number of delegated wallets increased by 2.6% to 1.14 million wallets.

Cardano Ownership in the US and Australia

Surprisingly, a December 2021 Finder survey revealed that ADA adoption is higher in Australia than in the US. The country leads in the adoption of Cardano across the globe. The coin comes third among the most popular cryptos in the country. About 26.4% of crypto owners in the country hold ADA.

Another survey in December 2021 indicated that ADA is the seventh most popular crypto in the US. About 2% of crypto owners in the country hold ADA. Some of the crypto ahead of ADA include Solana, Dogecoin, and Ripple.

According to new data published in early 2022, there’s increasing knowledge about Cardano in the US.

  • About 13% of the 3,144 respondents in the US knew about Cardano.

Factors Affecting Cardano Adoption

In 2021 Elon Musk’s tweet concerning how inefficient Bitcoin mining was, opened the door for more resource-efficient cryptos (green coins) adoption. Cardano was a beneficiary due to its low energy requirements and lower fees. Announcements by investment holdings like Grayscale have also contributed to a rising in the price of ADA.

The Cardano blockchain also supports NFTs, which were hugely popular in 2021. Developers rushed to put their NTF projects on the blockchain due to low fees, scalability, and security over blockchains such as Ethereum.

Competition is another key factor to watch out for. Cardano is operating in a crowded space with the likes of Solana, Ethereum, Litecoin, Avalanche, and Bitgert. Any significant move by competitors is likely to shift investors' interest.

Charles Hoskinson, Cardano’s founder, also seeks to ensure that Cardano is adopted by Fortune 500 companies, banks, and other big cooperations. If the foundation's five-year strategy stumbles, adoption rates could suffer.

The blockchain continues to see an increase in DeFi, with about $50 million invested so far in March 2022. Decentralized exchanges (DEXs) also continue to grow in value with a rapid increase in the total value locked(TVL) in Cardano’s network at $200 million. The TVL is quickly bearing down on the $1 billion mark. Such rapid growth will see increased adoption and belief among investors similar to the trend taken by Ethereum.

Cardano also generally follows the broader crypto market. At the moment, ADA’s prices have a 0.75 price correlation to Bitcoin. Its success will depend on the crypto market and other factors that influence it.

ADA’s addition to peer-to-peer marketplaces (P2P) will spur the adoption of Cardano, making it easier for consumers to buy the tokens.

There are also projects on Cardano that are increasing the value and popularity of Cardano. SingularityNet with over 30,000 holders and ADAPAD with 15,858 holders are some of the top projects on Cardano.

What Next for Cardano Adoption

Partnerships in developing countries aim to drive adoption levels. Cardano has already outlined an “Africa Strategy” aiming to influence everyday users and businesses in the continent. The strategy also aims to train and educate developers to build on the blockchain.

In what was touted as a win, the Cardano partners - Input Output Hong Kong(IOHK) signed a memorandum of understanding (MOU) with the Ethiopian government for the Cardano to be used in Agriculture and logistics.

The organization has been on a charm offensive in Africa and is looking to implement solutions across the continent. The project believes big opportunities in the continent can spur its adoption.

Cardano is also pursuing a sustainability goal that endears it to environmentally conscious investors. Samsung is partnering with Cardano to manage the planting of two million trees. With novel initiatives like Initial Tree Offering(ITO), it’s expected that Cardano will resonate with environmentally conscious consumers.

The Cardano blockchain is expecting to develop and adopt the Hydra scaling solution. This will make it the fastest blockchain network. Fees will also be cheaper giving Cardano an absolute edge over the likes of Ethereum. This and other technical solutions like staking capabilities increase the usability of the blockchain spurring adoption and ADA price increases.

Overall, it's expected that Cardano’s adoption will continue to grow in 2022. There has been an increase in the number of ADA holders. Blockchain enhancements are expected to spur growth in the short-medium term.

Stephen Ngari

Stephen Ngari

Stephen is a seasoned crypto and fintech specialist with industry experience. Having worked in tech, helping people send money globally and rollout solutions, he understands the impact that tech like blockchain brings to real world issues. He is passionate about crypto, writing and basketball.