A couple of interesting stats from the latest Kraken Intelligence report.
First up is the on chain dominance which as expected shows a weakening of altcoins relative to Bitcoin which is typical of bear market cycles.
Note that Cardano (ADA) is performing well against other altcoins, with potential for a stronger performance as we head towards the Vasil Hardfork in late June given the history of price gains in advance of hard fork events.
Next up is the on-chain transaction volume. Here we see a reduction for all chains year to date with the notable exception of Cardano which has posted a 369% increase.
This is the more telling statistic as it reflects the dramatic increase in use of the Cardano blockchain. Here we see that Cardano now has an equivalent transaction volume to Bitcoin even before the significant increase in transaction capacity that will be unlocked with the Vasil upgrade.
We can reasonably expect Cardano to pass Bitcoin in the coming 6-12 months, which would place it in the clear number one position. Usage and adoption are the primary driver of market cap in the longer term, and while we may see continued short term challenges as we head through the bear phase of the market, this is a very positive metric.