This Altcoin’s Network Activity Surged as Its Price Fell 13%, Diverging From Bitcoin and Ethereum!

Cardano (ADA) lost about 13% of its value in two days, while the number of daily active addresses on the network climbed to roughly 70% above its September weekday average.

On-chain analytics platform Santiment examined the increase in activity cited by Cardano supporters at the TOKEN2049 event using data. The number of daily active addresses was recorded at about 27,500 on October 7 and 27,200 on October 8. Both figures were about 1.7 times the September weekday average.

By contrast, ADA’s price fell 13% between the October 6 close and October 8. Thus, the price decline was accompanied by an increase in network usage.

Bitcoin and Ethereum Did Not See the Same Increase

On the same days, the daily active address counts for Bitcoin and Ethereum remained at or below their respective September averages. Based on this comparison, Santiment said that market sell-offs alone were not enough to explain the increase in activity on Cardano.

Although activity on Cardano exceeded the previous month’s normal levels, it remained below the peak at the end of August.

Persistence Will Be Monitored After the New Standard

The spike in the number of addresses coincided with the CIP-0113 token standard going live on the Cardano mainnet on October 7.

The point Santiment will monitor going forward is whether the increase remains limited to the launch week. Whether the rise in network activity seen around the new standard’s launch continues in the following weeks will be important in assessing how persistent this trend is.