Cardano Hits 1 Million Wallets Milestone As Network Grows

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Last Updated on 25 May 2021 by CryptoTips.eu

Cardano recently reached 1 million wallets on its network for the first time in the cryptocurrency’s 4 years of existence. This is coming as the network is experiencing growth in the space. ADA has grown fast to become the 5th largest cryptocurrency by market capitalization, according to CoinMarketCap.

The coin even became the 3rd largest asset for some time earlier this year before dropping to its current level. The new 1 million wallets milestone was attained owing to the growth of the network at the rate of 6800 wallets per day. This indicates a large number of users are developing interest in Cardano at this time.

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ADA staking attracting investors

Cardano is a cryptocurrency that uses the Proof-of-Stake consensus protocol. This gives ADA holders the opportunity to stake their ADA and get rewarded with more ADA as they help to secure the network. Staking is one of the core use cases of ADA and a very important one as the integrity of the network depends on it. But it has also become a lucrative venture.

Just last week, Cardano recorded an inflow of over $10 million from investors seeking to stake ADA, Coinshares’ digital asset inflow data reveals. The investment came mainly from institutional investors who are now turning to PoS cryptocurrencies as investments. This follows the increased criticism of Bitcoin concerning the effects of its mining on the environment.

This shift could be what is driving the market performance of Ethereum which is in the process of transitioning from Proof-of-Work to Proof-of-Stake algorithm. ADA has become one of the foremost PoS assets that investors are rushing into recently as investors seek profits on their holding with minimized risks.

Cardano launching new features

Cardano founder Charles Hoskinson has mentioned several times that he intends to make ADA a cryptocurrency for daily use. It is perhaps in line with this commitment that he continues to explore the creation of more use cases for the coin. The Cardano CEO recently announced that he network will soon launch smart contracts.

Smart contracts are becoming a critical part of the crypto ecosystem, as they are used in DeFi trading and to interact with dApps. Cardano launching such a feature could greatly improve the use cases and thus attract more users to the platform. This will place it in the category of Ethereum and the coin could grow stronger than ever in the nearest future.