   
Cardano (ADA) shows a strong signal of confidence from its holders despite the still low price.
On Tuesday, on-chain analytics firm IntoTheBlock revealed a resilient core of long-term investors, suggesting that significant upside for ADA could be in the offing despite current market conditions.
Notably, the firm noted that the number of unique addresses holding Cardano has remained stable at around 4.45 million for over a year. This plateau marks a stabilization phase following a spike in address growth that characterized the previous bull market when the coin rose to an all-time high of $3.10 in September 2021.
However, despite the success and stability so far, the company stressed that the Cardano ecosystem faces challenges, especially in attracting new users.
“In the last cycle, Cardano saw significant growth and positioned itself as a strong alternative to Ethereum. However, in the current cycle, the network faces a challenge in attracting new users, with much of the attention shifting to platforms like Solana and Base.” The company tweeted.
 As ZyCrypto recently reported, Solana has been gaining increasing market interest in recent months, particularly due to its growing meme coin ecosystem, which is diverting attention from Cardano. This shift in demand is clearly evident as Solana’s market cap has risen to 5th place, reaching $68.27 billion, just behind Ethereum. In contrast, Cardano has struggled to maintain its momentum, slipping to 10th place with a market cap of $12.30 billion, even falling behind Dogecoin over the past week, according to CoinMarketCap data.
However, Cardano’s underlying fundamentals remain strong. The network continues to handle an impressive daily transaction volume of around $7.2 billion. This high level of activity contributes to a notably low network value to transactions (NVT) ratio of 2.62, which according to analysts at the firm “may indicate that ADA is undervalued.”
Furthermore, the confidence of Cardano’s long-term holders is at an all-time high. Almost 40% of ADA’s total supply is held by long-term investors, reflecting a high level of commitment to the network’s future. This sizeable share suggests that despite the current price performance, there is a strong belief in the token’s long-term value and potential.
In addition to these indicators, Cardano will continue to develop its technological capabilities with the upcoming Chang hard fork, part of the network’s Voltaire era. This major upgrade aims to improve decentralized governance and introduce new community-driven features. While anticipation for the hard fork is high, it remains to be seen what immediate impact it will have on attracting new users.
Given the current mixed developments, investors are speculating whether the coin could be on the verge of a recovery. On Tuesday, analyst Trend Rider noted that ADA is maintaining crucial support at around $0.32 after a notable bullish weekly rejection candle, emphasizing that “This could signal the bottom as the broader crypto market recovers.”
At press time, ADA was trading at $0.34, up 1.88% in the last 24 hours.
