An analyst firm has indicated that the adoption of the Cardano (ADA) network has entered a phase of stagnation over the past year.

Cardano Total Holders are unchanged from a year ago

According to data from IntoTheBlock, ADA has seen a stagnation in its user base over the past year. The interesting metric here is the total number of Cardano addresses with a non-zero balance.

Below is the chart shared by the analytics firm that shows the trend of this indicator over the past years:

The value of the metric appears to have been moving sideways for quite the while now | Source: IntoTheBlock on X

As you can see in the chart, Cardano saw significant growth in its holder base during the 2021 bull market, but the metric’s growth slowed during the 2022 bear market and then completely plateaued over the past year.

This could indicate that while the cryptocurrency has gained significant popularity during the last boom, new investors no longer find the network worthwhile.

According to IntoTheBlock, growth during the previous cycle came about because ADA was positioned as a strong alternative to Ethereum, but today investors are attracted to other networks such as Solana and Base.

Historically, adoption has been important for any asset, as a broader user base can provide a stronger foundation for long-term movements to grow on. With ADA holders hovering around 4.45 million, the coin certainly doesn’t seem well-positioned in terms of this metric.

That said, there have also been some developments for Cardano that could be more positive. As the analytics firm pointed out, the network has seen a stable trend in daily active addresses since April.

Looks like the indicator's value has been flat over the last few months | Source: IntoTheBlock on X

An active address is an address that is participating in some kind of transaction activity on the blockchain. So, daily active addresses is a metric that reflects the number of users using the network each day.

“Despite the slowdown in new user arrivals, the network’s transaction volume and active user base have remained stable since April, indicating a dedicated community that remains committed to the protocol,” IntoTheBlock explains.

Moreover, Cardano has recently been processing a large volume of $7.2 billion daily, which is more than many other networks.

The 7-day data for the on-chain transfer volume on the ADA network | Source: IntoTheBlock on X

It also appears that the conviction to HODL is growing among Cardano investors, with nearly 40% of the supply remaining dormant for a year or more.

The distribution of the ADA supply among the different investor groups | Source: IntoTheBlock on X

ADA award

At the time of writing, Cardano’s price is hovering around $0.336, up over 3% over the past seven days.

The price of the coin appears to have been stagnant recently | Source: ADAUSD on TradingView

Main image from Dall-E, IntoTheBlock.com, chart from TradingView.com