Cardano Signals Bullish Momentum at TOKEN2049 Amid ADA Rebound

Cardano Sees Surge in Network Activity Following New Token Standard Launch

Despite a significant downturn in the broader market at the end of last week, on-chain data reveals a notable surge in daily active addresses on the Cardano network. Following the introduction of a new token standard, daily active addresses climbed to approximately 1.7 times the average weekday level observed in September.

Simultaneously, Cardano has achieved a significant milestone in its pursuit of a “.ada” internet domain.

According to data from Santiment Intelligence, Cardano recorded around 27,500 daily active addresses on October 7, with a similar figure the following day. This represents a substantial increase compared to the average weekday activity in September. Analysts investigated whether the general market decline could account for this uptick but found that active addresses on both Bitcoin and Ethereum remained at or below their respective September averages during the same period.

The surge in activity coincided with the October 7 launch of CIP-0113, Cardano’s new programmable token standard. The Cardano Foundation explained that this standard empowers issuers of regulated assets, such as stablecoins and tokenized funds, to embed requirements like Know Your Customer (KYC) procedures, sanctions checks, and transfer restrictions directly into native Cardano tokens. The standard went live after undergoing multiple independent security audits and has received recognition from the Capital Markets and Technology Association (CMTA).

Despite this increase in network activity, Santiment cautioned that it still falls short of Cardano’s local high recorded in late August. It remains to be seen whether this heightened activity will persist beyond the initial launch phase, particularly as the price rally for ADA has begun to cool. The cryptocurrency recently reached a multi-month peak of $0.28 before facing rejection, and a subsequent market decline pushed its price below $0.24 on Friday. However, ADA has shown a rebound, trading up by over 7% in the past 24 hours.

The spike in network activity occurred alongside another potentially impactful development for the wider Cardano ecosystem. The Cardano Foundation announced at TOKEN2049 earlier this week that its application for the “.ada” generic top-level domain (gTLD) has advanced to the next stage of ICANN’s New gTLD Program. This proposal had previously garnered approximately 75% support from the Cardano community through an on-chain Governance Action.

If approved, “.ada” would function as a legitimate internet top-level domain, akin to existing extensions such as “.com” or “.org.” The Cardano Foundation believes it could eventually facilitate simplified wallet addresses, integrate decentralized identity solutions, and enable domain tokenization. However, ICANN is still in the process of assessing the application’s technical, financial, and operational readiness. Successful domains from the current application round are anticipated to be delegated between 2028 and 2030.