Cardano: Can memecoins on the network drive ADA towards $1?
- Interest in Cardano memecoins grew as price of FREN surged.
- Activity on the network remained high as transactions occurring on the network remained stable.
The memecoin sector witnessed massive amounts of growth over the last few days, with popular tokens such as DOGE, SHIB and WIF seeing tremendous growth.
However, as interest in the mainstream options for memecoins has grown, many traders have started looking at other ecosystems to find other undervalued memecoins.
Making FRENS along the way
Recent data indicated that FREN, the memecoin on the Cardano[ADA] network, has seen a notable 9% increase in the past 24 hours.
Source: X
The recent surge in memecoin interest on the Cardano network carries multiple implications for the ecosystem.
On the positive side, the increased activity and transactions associated with memecoin trading could infuse vitality into the Cardano network, fostering community growth and engagement.
Moreover, the exploration of undervalued memecoins may attract a fresh user base, expanding the network’s reach.
Additionally, the popularity of Cardano for memecoin trading could stimulate further ecosystem development, encouraging the creation and deployment of new projects.
However, there are potential downsides, including the inherent volatility and risk associated with memecoins, which could introduce price instability and pose risks for investors.
A sudden surge in network activity might strain the Cardano infrastructure, leading to congestion and potential delays in transactions.
Furthermore, increased regulatory attention due to memecoin trading could result in scrutiny and regulatory measures that may impact the broader Cardano ecosystem. The net impact will depend on the network’s ability to manage and adapt to the evolving dynamics of the memecoin market.
How is the network doing?
At press time, the number of daily active addresses within the network increased, while the daily transaction volume on the network remained stable.
An increase in active addresses indicates a growing user base and heightened engagement within the ecosystem, contributing to its overall vibrancy.
Additionally, the stability in daily transaction volume reflects a sustained level of activity, fostering reliability and user confidence.
Source: X
How much are 1,10,100 ADAs worth today
At press time, ADA was trading at $0.734 and its price grew significantly over the last few weeks. Despite the surge in price, the velocity at which ADA was trading had declined.
Moreover, the MVRV ratio for ADA grew indicating that the profitability of holders was on the rise. A surge in profitability could incentivize addresses to sell their holdings.
Source: Santiment
