The Cardano network is showing an impressive recovery from its June crash. Over the past week, I recorded the emergence of 14,783 new active addresses with a non-zero balance. This surge in activity coincided with a powerful rally of the native token ADA, which rose by 32.5% over the same period.
Recall that at the end of June, the situation was critical: ADA crashed to four-year lows around $0.14. However, on July 5, the price briefly reached $0.199 before stabilizing around $0.19. This trend reversal is a classic signal of the return of retail investors who have regained confidence in market stabilization.
Retail Investors Return: What's Behind the Growth?
Notably, large holders ("whales") began accumulating coins even during the period of minimal network activity. This traditionally indicates preparation for upcoming network upgrades. The increase in wallet numbers confirms that retail buyers followed "smart money," having spotted a bottom after prolonged sell-offs.
It's worth remembering that the June crash was triggered not only by market factors but also by internal conflicts surrounding votes on project funding from the treasury, as well as statements by Charles Hoskinson about increased strain on the ecosystem. However, the current dynamics show that the community is ready to move forward.
Systemic Risks Persist: Governance and Leios
Despite the positive price dynamics, the project's internal contradictions remain unresolved. Hoskinson has initiated a large-scale audit of thousands of decentralized organizations receiving grants from the treasury. The review began after the cancellation of the 2026 annual summit and prolonged conflicts over budget allocation.
On the technical side, developers are strictly following the modernization plan. The upcoming scaling phase called Leios is designed to significantly increase the blockchain's throughput. Deployment on the mainnet is scheduled for the end of this year.
The main test for new users will come during the next round of voting on platform development issues. If asset holders do not start panic-selling coins at the first signs of difficulty, the June downturn can officially be considered a temporary capitulation rather than a systemic collapse.
Cryptalist Expert Opinion: The growth in wallet numbers and the ADA rally are undoubtedly bullish signals. However, I advise caution. Cardano's internal governance issues could trigger a new wave of volatility at any moment. The current bounce looks more like a technical recovery from oversold conditions rather than the start of a sustainable long-term trend. The key level to confirm a reversal will be a consolidation above $0.25.