A report by one of the leading cryptocurrency intelligence firms, IntoTheBlock, has revealed that the increase in the number of huge transactions on the Cardano blockchain has rapidly spiked by almost fifty times in the last five years.
The explosion in large transaction volumes on Cardano points to institutional players’ ever-increasing adoption of blockchain networks.
What is Large Transaction Volume (LTV)?
A “large transaction volume” is the aggregated transaction volume denominated in the ADA token and valued above $100,000. Since the beginning of the year, the LTV on the Cardano network has jumped from 1.35 billion ADA tokens per day to 69 billion ADA, worth $81.4 billion, trading on the Cardano platform as of Monday.
That is a 50% surge in three months and marks one of the highest trading volumes since 2018, as revealed by IntoTheBlock.
In a recent tweet, IntoTheBlock further noted that such a huge leap in the volume of trade points to an increase in institutional activity on the Cardano network.
However, other performance metrics like the average transaction size and volatility remain stunted, but the number of addresses has been moving upward since the start of the year. At the beginning of the year, there were 3.4 million addresses, which have since surged to 5 million.
Cardano’s founder, Charles Hoskinson, revealed that there are currently seven decentralized applications (DApps) on the DeFiLlama platform; more are expected to be on the way due to the ongoing effort to conclude the development of a hard fork in the middle of the year.
The TVL is presently at $303 million, according to the unique DeFi app tracking platform, DeFiLlama, which is a bit short of the $326 million previous all-time high recorded on Thursday.
Decentralization and the Hurdles
In a keynote address during the Binance Blockchain Week in Dubai, Hoskinson drew the audience’s attention to the need for decentralization and the inherent difficulties in the operational process that it brings. According to the Cardano founder, the Web3 is a new era, a new disposition, and a new challenge with no figurehead to lead the industry:
“If the industry is indeed decentralized, as was often the talk in the space, players need to join their hands together. A sort of regulation guiding the function and processes of these things is needed.”
The founder points to the absence of the necessary framework to steer the Web3 industry when the tech world is synonymous with rapid changes in structures and processes. Hoskinson is calling the attention of all to what lies ahead for achieving the goal of decentralization and the imminent move to Web3.
However, there has not been any move to find the intent of what decentralization can achieve nor the drive by the industry to take charge of the impending need to shift from centralized algorithms, which give a few the means to control the industry as they want.
As Hoskinson concluded, the decision is for all to make; can it be done?