ADA social dominance has remained high in the past weeks, resulting in an impressive 1,726% surge in Cardano onchain transaction volume between January and September 2023.
The Charles Hoskinson-founded Cardano blockchain has retained its position as a top smart contract platform amid ADA’s low market value. This is evident in the rising onchain transaction volume recorded on the proof-of-stake blockchain in the past weeks.
Behavioural analysis platform Santiment called attention to this positive development on Sunday, implying that ADA still looks promising. “Cardano is still seeing rising onchain transaction volume despite its suppressed market value compared to its April local top,” Santiment remarked alongside a chart. The chart depicted ADA’s weekly transaction volume and social dominance.
Cardano Onchain Transaction Volume
According to the leading market intelligence platform, onchain transaction volume on Cardano has been increasing since January. As of early January, ADA transaction volume was valued at around $3.54 billion per the chart. At that time, ADA was trading below $0.23 per token.
Following the unending developments in the Cardano ecosystem including the Mithril upgrade, Santiment revealed that ADA’s transaction volume rose above the $65 billion mark in late August. This demonstrated a whopping $1,726% increase in ADA weekly onchain transaction volume within 8 months.
However, there was a sharp decline in the network’s transaction volume in early September. As of Sept. 3, ADA transaction volume stood at $42.23 billion at the time of the update.
Reacting to the recent outcome, Santiment acknowledged that an increased social dominance and utility would help to further boost ADA’s transaction volume and market value. “Utility plays an important role in any bounce, and this combined with adequate ADA social dominance, is still promising,” part of the update read.
ADA Social Dominance Stays Up
Inarguably, ADA is among the most discussed and analyzed digital assets in the crypto market. Santiment corroborated this fact, revealing that the asset boasted a 1.19% social dominance in the crypto market as of Sept. 3. Shiba Inu (SHIB) and XRP are other popular assets with high social dominance.
For the uninitiated, social dominance refers to the discussion rate of a particular asset among crypto community members. A high social dominance could mean that investors are highly interested in a particular asset. Meanwhile, a low social dominance could mean that traders are not interested in a particular crypto asset.
Therefore, Santiment’s latest data indicates that investor interest in the 7th-largest crypto asset by market capitalization is still on the high side despite ADA’s suppressed market value. Notably, ADA is exchanging hands at $0.2562 at press time, down over 11% in the past 30 days.