The Cardano ($ADA) network has added around 100,000 new wallets in roughly a month at the time of the launch of its ERC-20 converter tool, which allows Ethereum tokens to be run on the Cardano blockchain.

As first reported by Finbold, Cardano blockchain insights shared on Google’s Data Studio by the Cardano Fans Stake Pool show that in mid-March there were around 3.159 million ADA wallets on the network, while now the figure stands above 3.26 million wallets.

As CryptoGlobe reported, the number of wallets being created within the Cardano blockchain has already grown by over 500,000 so far this year, with 453,000 of those wallets being created in the first quarter. The number of wallets on the cryptocurrency’s network has been growing exponentially. It grew 1,200% year-over-year last year, from around 190,000 ADA wallets in December 2020 to 2.5 million in December 2021.

Notably, data shows that with ADA’s price below the $1 mark, 82% of the cryptocurrency’s holders are currently “out of the money.” The price of ADA has been steadily dropping ever since it hit a $3.1 all-time high in November 2021.

According to data from on-chain analytics firm Santiment, while ADA is now down significantly from its all-time, whales holding over 10 million ADA tokens have “returned to their largest percentage of supply held in two years” at 46.6%.

The network’s growth comes at a time in which its long-awaited ERC-20 converter tool has launched. In a blog post published by Input Output’s Project Manager Francisco Landino last month, it’s detailed the tool is set to “expand the variety of use cases for application developers and businesses.” The post reads:

By enabling the migration of ERC20 tokens to Cardano, we focus on delivering a value proposition that leverages Cardano’s advantages over Ethereum. In particular, Cardano’s higher capacity for transaction processing and lower fees when compared with Ethereum’s high cost and often congested traffic.

The tool’s launch came with IOG’s first migration partner, SingularityNET, a decentralized artificial intelligence network.

Notably, according to CryptoCompare’s latest Asset Report, the price of Cardano’s native currency ADA broke a six-month losing streak by ending the month with a positive return of 18.4%

CryptoCompare’s report details that in March, average daily returns for ADA holders were 0.55%, up from -0.70% in January and -0-20% in February. The cryptocurrency’s annual inflation dropped below the 2% mark.

DISCLAIMER

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

IMAGE CREDIT

Featured image via Unsplash