Data from the Cardano ($ADA) network shows that the number of wallets on it has grown by over 100,000 so far this month in the wake of FTX’s collapse, as cryptocurrency users are seemingly moving their funds to wallets they control on-chain.
According to data from Cardano Blockchain Insights, the number of Cardano wallets has recently grown by over 100,000, going from around 3.633 million at the beginning of the month, to over 3.73 million at the time of writing.
The accelerated growth of Cardano wallets on the cryptocurrency’s network comes after the collapse of popular cryptocurrency exchange FTX, which endured a bank run this month. The bank run saw FTX halt withdrawals and, later on, filed for Chapter 11 bankruptcy protection.
After FTX’s bankruptcy filings, contagion hit the cryptocurrency space, and confidence in centralized platforms was severely affected. Cryptocurrency lender BlockFi has suspended withdrawals and won’t be “able to operate business as usual” given the bank run on FTX and the lack of clarity as to what is happening with the cryptocurrency exchange.
As CryptoGlobe reported, the Cardano network has nevertheless kept on growing, and recently reached a new milestone with the launch of its first stablecoin. Other stablecoins are being created on the Cardano network. EMURGO, which is the commercial arm of Cardano, announced the planned launch of its new dollar-backed stablecoin USDA, which is “the first fully fiat-backed, regulatory compliant stablecoin in the Cardano ecosystem,” earlier this month.
According to EMURGO’s press release, USDA “leverages the stability of the U.S. Dollar combined with Cardano’s security, low fees, and eco-friendly blockchain” and offers “locks in the value of investors’ crypto assets by pegging 1:1 to the U.S. dollar, reducing volatility, and unlocking fast global transactions without legacy banking and payment infrastructure delays.”
Similarly, a Cardano-powered algorithmic stablecoin called Djed ($DJED) is set to launch early next year on the smart contract platform’s mainnet, according to an announcement developers made at the Cardano Summit in Lausanne, Switzerland.
Featured Image via Unsplash