- Cardano saw a surge in network activity due to the rising payments.
- Sentiment declined, however, development activity continued to grow.
Cardano [ADA] witnessed a massive surge of activity over the last few days. This rising activity could be attributed, in part, to the growing number of payments occurring on the network.
A spike in activity
According to recent data, Cardano processed 255,000 payments in the last 24 hours. The network witnessed the creation of 5,500 new wallets per day, indicating growing activity and adoption.
Due to this, the Daily Active Addresses on the network grew from 31,000 to 45,000 over the last few days. Moreover, Daily Transactions grew from 54,000 to 80,000.
Source: Artemis
Charles Hoskinson weighs in
Recent comments by Charles Hoskinson could also sway public opinion, going forward. He recently shared his insights in a tweet, in which he criticized Bitcoin [BTC] L2s while praising Cardano and Ethereum [ETH].
Having been around for more than ten years, I have seen this narrative thrice. It follows the halving.
Every L2 venture will learn that it's impossible because Bitcoin cannot change enough to support the things required for a vibrant L2 environment. Both Ethereum and Cardano… https://t.co/56jbfCax4U
— Charles Hoskinson (@IOHK_Charles) February 4, 2024
He emphasized the challenges faced by L2 ventures on Bitcoin, asserting that its inherent limitations make it challenging to support the requirements for a robust environment.
In contrast, both Ethereum and Cardano continually upgrade, offering developers enhanced options for deploying reliable, and secure L2 solutions.
State of the network
Despite the heightened activity, the total fees collected by the Cardano network continued to fall. Over the past month, Cardano witnessed a massive decline in fees, dropping by 29.4%.
This raised concerns about the network’s revenue generation and sustainability. As a result, incentives for network validators and stakers may get affected.
Source: Token Terminal
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Looking at the sentiment
Development activity on Cardano exhibited sustained growth at press time. However, things did not look at good on the social front.
The Weighted Sentiment had declined at press time, suggesting that negative comments outweighed positive ones at the time of writing.
Source: Santiment
