Metric analysis

Cardano (ADA) outlook is bright based on this metric – but there is a catch: Crypto Exchange Kraken

Crypto exchange Kraken says two on-chain metrics measuring demand for digital assets suggest a bullish outlook for Cardano (ADA).

In its March 2022 on-chain crypto digest, Kraken said that ADA transaction fees, the cost market participants are willing to pay to use blockchain, have increased by more than 50% since the start of the year.

ADA’s transaction fees are rising amid a general drop in transaction fees for other major crypto assets, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Tezos (XTZ).

“ADA transaction fees have increased by approximately +51.5% from $0.33/tx to $0.5/tx year-to-date. In March alone, ADA fees increased by +37%”

The adjustment settlement value, which represents the US dollar value of the total amount of crypto assets transferred on-chain during a given period, also indicates growing network demand for Cardano in 2022.

“On-chain indicators suggest the outlook for ADA is bright as demand increases. The 7-day moving average of ADA-adjusted transfer value volume increased an astronomical +2,472% from $2.5 billion to $64.3 billion. Additionally, ADA’s transfer volume jumped nearly +186% from $22.5 billion in the past 30 days alone. This increase in on-chain demand coincides with the increase in ADA’s transaction fees.

However, ADA did not perform well in other measures. Cardano was the worst performer in terms of active addresses in March with a 20% decline in network activity. The crypto asset also lost 9% of monthly active supply, the biggest drop compared to other coins.

Cardano’s market capitalization also fell by 6.6% despite a general increase in the market value of crypto assets.

ADA is worth $1.06 at the time of writing.

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