Institutions Are Coming to the Cardano Network as Transaction Volume Increases
according to the data of IntoTheBlockADA faced an influx of institutional funds into the network as it suffered a 50-fold increase in on-chain transaction volume, reaching 69 billion.
The increased demand for the Cardano network was coupled with the general growth of the network as its TVL exceeded $300 million, with a total market capitalization breaking above $40 billion and the price reaching a two-month high.
@ cardano Experiencing increasing institutional demand
On-chain transaction volume >$100k only increased 50x in 2022
yesterday, total 69.09b $ada Moved in these large transactions, representing 99% of the total on-chain volumehttps://t.co/8ME8STvRSF pic.twitter.com/aqH7hYIPiV
— IntoTheBlock (@intotheblock) 29 March 2022
According to additional data provided by IntoTheBlock, the number of large transactions with volumes above $100,000 increased 50x. 99% of the total amount of funds withdrawn on March 28 consisted of large transactions.
What is meant by large institutional volume?
Such a rapid increase in institutional volume reflects the increased fundamental value of the project. Since the beginning of the year, developers working on the Cardano network have released and actively developed new use cases for the blockchain, such as peer-to-peer exchanges and EVM-compatible Layer 2.
With the release of new solutions on-chain, Cardano becomes more relevant to institutional investments that often seek the real value behind a project rather than speculative returns.
In line with Ethereum’s path to the market, experts expect Cardano’s capitalization and number of users to grow rapidly. The theory speaks of an increase in transaction volume, the number of holders, and the total value locked in various smart contracts.
Prior to this, Cardano’s TVL was over $300 million, compared to around $100 million at the beginning of the month. The nearly threefold increase was due to a series of decentralized app releases, such as Minswap and others.
In terms of market capitalization and price, ADA saw an increase of at least 50% compared to the beginning of the year.