- Cardano daily transactions surged past 50,000, driven by rising interest in a possible ADA ETF approval and strong network metrics.
- Whale accumulation and a $680M ADA outflow from exchanges indicate strong investor confidence ahead of the SEC’s ETF ruling.
- ADA’s price has climbed 8% in May, supported by increasing developer activity and positive sentiment from on-chain data.
Cardano has recorded a new monthly high in daily transaction activity, reaching 50,000 transactions as of this week. This surge reflects increased investor activity tied to growing anticipation around the possible approval of a spot ADA exchange-traded fund by the United States Securities and Exchange Commission.
At the beginning of May, Cardano transactions remained under 30,000 daily. However, consistent growth throughout the month pushed the number upward. The network’s daily transaction volume reached $684.6 million, signaling a significant rise in user engagement and transaction activity on the blockchain.
Price Movement Tracks Network Activity
ADA’s price has followed this uptick, gaining nearly 8% since the start of the month. Over the past week, the price rose by 5%, showing strong alignment with the spike in on-chain performance. Traders and analysts are observing ADA closely as a potential price breakout appears likely if current momentum holds.
Enthusiasm around the potential approval of an ADA spot ETF continues to build. The SEC is expected to announce its decision on May 29. According to PolyMarket data, the probability of approval has climbed to 71%. If granted, approval could lead to increased institutional investment, mirroring the recent success seen with Bitcoin and Ethereum ETFs.
Whale Activity Signals Bullish Sentiment
In preparation for the upcoming decision, whale investors have increased their accumulation of ADA. Around $680 million of ADA tokens have been removed from exchanges, according to on-chain data. Usually, it demonstrates that an investor is confident the price will rise at a later date.
Beyond trading data, Cardano’s developer activity has remained strong. It currently leads Ethereum and Solana in this category, suggesting increased work on the protocol’s core improvements. This rise in development further solidifies its position as a blockchain network gaining fundamental strength.
With strong fundamentals in place, analysts are looking toward ADA’s previous high of $3 as a potential short-term target. A report from Coingape even projected a possible increase to $4.50 if ADA continues to break through key technical levels supported by current investor sentiment.
