Key Highlights:
- Cardano broke a five-year-old network record during Epoch 660, settling 1,780,896 transactions with an average of 83.83 transactions per block.
- Network revenue reached a record high, surpassing $100,000 in a month for the first time to touch $136.6k, according to Chainspect.
- Despite the operational surge, whale addresses sold 110 million ADA in five days as daily active addresses dropped 41.36% to 15,977, threatening the $0.24 support level.
Cardano initiated the second week of October with a wave of significant fundamental milestones. On-chain data indicates that the blockchain network has broken an operational record that had stood for nearly five years. During Epoch 660, the network processed a total of 1,780,896 transactions, eclipsing its previous historical high of 1,566,974 transactions recorded in November 2021. This performance brought the network’s throughput efficiency to an average of 83.83 transactions per block.
Record Network Revenue Diverges from Market Value
The surge in throughput has translated into financial milestones for the Layer-1 protocol. According to data from analytics platform Chainspect, Cardano generated more than $100,000 in monthly network revenue for the first time in its operational history, ultimately climbing to $136.6k over the past month. In standard financial analysis, this type of divergence between fundamental growth and market valuation often suggests an asset is undervalued, as underlying utility expands despite prevailing price weakness.
Typically, a disconnect where network revenues and settlement volumes expand while the native token faces short-term downward pressure attracts institutional and value-oriented investors seeking opportunities where underlying utility exceeds spot valuation. However, the current on-chain dynamics around ADA reveal conflicting signals that challenge the conventional undervaluation thesis.
Whale Liquidations and Active Address Contraction
Despite the high aggregate transaction counts, broad-based user participation and asset accumulation have failed to keep pace. Market data reveals that Cardano whales have actively distributed their holdings over recent sessions, selling off 110 million ADA within a five-day span. This sustained sell-side volume from major holders has intensified pressure on the altcoin’s price as it trends closer toward critical technical support.
Concurrently, unique user participation has experienced a steep drop-off. The number of daily active addresses on the Cardano blockchain fell by 41.36% to 15,977, down sharply from the 27,248 active addresses recorded during the equivalent period the previous week. The sharp decline in unique participating wallets indicates that while total settled transactions per block surged, broader network engagement and adoption are contracting.
Why This Matters
This growing divergence between high per-block transaction throughput and declining unique user participation highlights an underlying fragility in ADA’s market positioning. Rather than treating recent price declines as an immediate accumulation opportunity, larger market participants appear cautious. If whale distribution continues and active participation remains suppressed, Cardano faces the risk of breaching its critical $0.24 support level, potentially exposing the digital asset to an extended corrective phase.
Frequently Asked Questions
What specific record did Cardano break in Epoch 660?
In Epoch 660, Cardano processed 1,780,896 transactions, breaking its previous all-time record of 1,566,974 transactions set in November 2021. The network achieved an average of 83.83 transactions per block.
How much revenue did the Cardano network generate last month?
According to Chainspect data, Cardano crossed the $100,000 monthly revenue threshold for the first time, reaching $136.6k over the tracked monthly period.
Why are analysts concerned about ADA despite the record-breaking network activity?
Concerns stem from whale investors dumping 110 million ADA in five days alongside a 41.36% weekly decline in daily active addresses, which dropped to 15,977. These trends signal weakening user participation and persistent selling pressure near the key $0.24 support price level.
