Cardano active addresses jump to 27,500 after CIP-0113 upgrade, ADA falls 13%
Cardano‘s network activity surged following the activation of the CIP-0113 upgrade, with daily active addresses approaching 27,500. This level represents an increase to 1.7 times the September weekday average, based on figures provided by on-chain analytics platform Santiment.
Network Engagement Rises After Upgrade
On October 7 and 8, Cardano’s daily active addresses reached 27,500 and 27,200, respectively. While these numbers marked a clear increase from September’s averages, they remained slightly below the peaks seen at the end of August.
The jump in activity followed the launch of CIP-0113, a token standard upgrade designed to expand token capabilities on Cardano, a decentralized blockchain platform popular for its focus on scalability and sustainability.
Santiment observed that Bitcoin and Ethereum, the two largest cryptocurrencies by market cap, did not experience similar spikes in network activity during this period. Their daily active address counts remained flat or below recent averages, highlighting Cardano’s distinctive uptick.
While the timing of the upgrade and the increase in engagement align, analysts caution that more time is needed to determine if the new activity reflects lasting adoption or simply a short-term reaction to the upgrade rollout.
Active addresses offer insight into user participation but do not distinguish between those accumulating, transferring, interacting with applications, or selling ADA tokens. Thus, higher address counts are a sign of increased engagement but not a direct indicator of buying pressure or immediate price strength.
Mini dictionary: CIP-0113, a Cardano Improvement Proposal, introduces new standards for native tokens, enhancing the network’s token functionality and expanding potential use cases for decentralized applications and developers on the Cardano blockchain.
ADA Price Slides Despite On-Chain Growth
Despite the growth in network participation, ADA’s price fell by approximately 13% between the close on October 6 and October 8. This divergence between network usage and market value underscores the complexity of interpreting on-chain metrics alongside price action.
Even as more users interacted with Cardano, the increased activity alone was not enough to support immediate price gains for ADA.
The key question for Cardano is whether recent engagement levels will persist or quickly fade now that the upgrade has gone live. Lasting activity could suggest that the network is attracting sustained user interest, while a pullback might indicate the spike was largely event-driven.
| Cardano | ~27,500 | ~16,000 | -13% |
| Bitcoin | No significant change | Stable | N/A |
| Ethereum | No significant change | Stable | N/A |
Analysts Outline ADA Recovery Path
Technical analyst Giannis Andreou presented a potential recovery scenario for Cardano, starting at the 0.22–0.25 support range. Holding above this level may allow for a challenge of the next significant resistance at 0.30–0.35. A successful reclaim and repeated retest of this zone would indicate growing bullish momentum.
Should ADA break through this area, further resistance is projected at 0.40–0.45, then at 0.55–0.65. Andreou’s analysis places a possible longer-term target at $0.90, stressing that this target depends on ADA’s ability to clear all major resistance levels in sequence.
Turning 0.30–0.35 from resistance into support would be a key milestone to confirm a more optimistic price outlook for ADA.
Conversely, a drop and sustained move below $0.22 would weaken the recovery setup and raise the prospect that ADA returns to its recent lows.
The broader outlook for Cardano now hinges on whether current network momentum can be maintained and matched by renewed buying strength in the market. While CIP-0113 has sparked a wave of activity, its longer-term influence will become clearer as usage patterns settle in the coming weeks.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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