Cardano Sets Five-Year Transaction Record as Whale Selling Puts $0.24 Support at Risk
Cardano has recorded its highest transaction count in five years, while monthly network revenue climbed to $136,600. However, the improvement in on-chain metrics has not translated into stronger market sentiment, as large holders sold 110 million ADA over five days and daily active addresses declined sharply. The contrasting signals have raised questions about whether ADA is overvalued despite growing network activity.
ADA gained for three consecutive months, bringing its price close to $0.30 before beginning October with a decline of more than 3%. With selling pressure continuing, analysts are monitoring $0.24 as a key support level that could determine whether the cryptocurrency stabilizes or faces a deeper correction.
Cardano Transactions Reach a Five-Year High
Cardano's transaction activity reached a new milestone in Epoch 660, when the blockchain processed 1,780,896 transactions. This surpassed the previous record of 1,566,974 transactions set in November 2021, marking a new five-year high. The network averaged 83.83 transactions per block during the period.
source:X
The record points to increased transaction throughput on the Cardano network, even as ADA struggles to maintain its recent price strength. Ordinarily, rising network activity alongside a weakening token price can suggest a potential disconnect between an asset's market valuation and its underlying fundamentals.
However, transaction volume alone does not establish whether a cryptocurrency is undervalued. Other indicators, including user participation, holder behavior and network revenue, provide additional context for assessing whether stronger blockchain activity is translating into sustainable demand.
Cardano Monthly Revenue Climbs to $136,600
Blockchain data platform Chainspect reported that Cardano generated $136,600 in revenue over the last month, exceeding $100,000 in monthly revenue for the first time. The milestone adds another positive indicator to the network's recent activity figures.
The increase in transaction volume and revenue suggests that Cardano's network activity is expanding. Nevertheless, these improvements have yet to provide a clear bullish signal for ADA's market performance, with selling pressure and weakening participation raising concerns about the sustainability of its valuation.
Whale Selling Adds Pressure to ADA Price
Large Cardano holders have reportedly sold 110 million ADA over the past five days. The selling has added pressure to the token as its price approaches the closely watched $0.24 support level.
source:X
Whale activity can influence market sentiment because large transactions may increase available supply and intensify short-term price movements. In Cardano's current situation, the reported distribution by major holders contrasts with the blockchain's record transaction count and higher monthly revenue.
The divergence complicates the argument that ADA's recent price weakness represents an attractive buying opportunity. Although improving fundamentals can draw investor interest, substantial selling by large holders may limit the market's ability to recover in the near term.
Daily Active Cardano Addresses Fall 41.36%
Another concern is the decline in Cardano's daily active addresses. The metric fell 41.36% to 15,977, compared with 27,248 during the same period one week earlier.
The decrease suggests that the number of active addresses participating in the network has weakened despite the record transaction count. While total transactions measure activity on the blockchain, daily active addresses provide a different perspective on participation. The two metrics can move in different directions and should not be treated as interchangeable measures of adoption.
The combination of declining active addresses, whale selling and recent price weakness raises questions about whether ADA's market valuation is adequately supported by current network conditions. Record transaction activity and rising revenue remain positive indicators, but they do not independently demonstrate growing demand for the token.
Why the $0.24 Support Level Matters for ADA
Cardano's near-term price outlook depends partly on whether buyers can defend the $0.24 support level. A break below that area could expose ADA to a deeper correction, although the available figures do not establish that such a move is inevitable.
The contrast between network performance and market behavior remains central to the valuation debate. Cardano has achieved a five-year transaction record and reached a monthly revenue milestone, but the sale of 110 million ADA by large holders and a sharp decline in daily active addresses indicate that market conditions remain challenging.
For now, the available data presents a mixed picture for Cardano. Network activity and revenue have improved, while holder behavior, user participation and price performance point to continued caution. Whether the recent correction creates a buying opportunity or develops into a more significant decline will depend on how these competing signals evolve.
data source:ambcrypto.com
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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