'Institutional demand': 50x increase in large transaction volume on Cardano by 2022

Crypto intelligence firm IntoTheBlock reported that the number of large transactions on the Cardano blockchain has increased by more than 50 times this year.

Large transaction volume (LTV) refers to transaction volume worth more than $100,000 denominated in Cardano’s native token ADA. Since January 1, the LTV of changing hands on Cardano has increased from 1.35 billion ADA per day to 69 billion ADA (worth $81.4 billion) on March 28.

That's a 51-fold jump in about three months and one of the highest levels since mid-2018, according to IntoTheBlock. In a March 29 tweet, the firm said such high volumes indicated "increasing institutional demand."

Cardano is experiencing increasing institutional demand

On-chain transaction volume greater than $100,000 will grow 50x in 2022 alone

A total of 69.09 billion ADA was transferred in these large transactions yesterday, accounting for 99% of the total transaction volume on the chain

— IntoTheBlock (@intotheblock) March 29, 2022

According to the data analytics firm, total addresses have been increasing since early 2022, although other metrics such as average transaction size and volatility remain relatively stagnant. There were about 3.4 million addresses at the start of the year and it has now grown to 5 million. While only seven DApps are currently live on DeFi Llama, Cardano co-founder Charles Hoskinson said that more are expected due to the hard fork expected in the middle of the year.

According to DeFi application tracker DeFiLlama, Cardano’s total value locked (TVL) is currently $303 million, just shy of its all-time high of $326 million set on March 24.

Hoskinson delivered a rousing keynote at the Binance Blockchain Week conference in Dubai on Monday, in which he spoke about the need for decentralization and the coordination difficulties it creates. He said that "we are entering a new era with Web3" and that "unlike Web2, there is no leader" to make decisions for the industry.

"If we're going to be truly decentralized, we've got to somehow come together and figure this out. We've got to have some bylaws for these things; we've got to decide 'what's the bill of rights to use cryptocurrencies and blockchain technology?'"

He said: "There are two paths in front of us, one is to maintain integrity, seek decentralization, find these things, understand these things. The other is we ignore it. In this case, we will have custodians, highly centralized The optimized and highly optimized consensus algorithm can be reset at any time. The minority will control the majority.

"That's the decision, it's not me making the decision, it's all of you making the decision."

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