Cardano has set an all-time high in the Nakamoto coefficient, a network decentralisation indicator.

On Aug. 5 (local time), blockchain outlet U.Today reported that Cardano’s Nakamoto coefficient rose to 16, setting a new record.

Chainspect, a Web3 blockchain fundamentals tracking service, compiled the figure. Cardano stake pool operator (SPO) Rick McCracken (릭 맥크래컨) shared it on X, formerly Twitter. McCracken said Cardano had set a new decentralisation record.

The Nakamoto coefficient refers to the minimum number of independent entities that would need to collude to disrupt a specific blockchain network. A higher figure indicates that authority is less concentrated in a small number of actors. Chainspect explained that the record means stronger censorship resistance for users and that the network is controlled by many rather than a few.

In proof-of-stake (PoS) blockchains such as Cardano, the metric is calculated based on stake pools, validators and block producers. In proof-of-work (PoW) systems, it is calculated based on mining pools. A low figure is interpreted as a signal of elevated concentration risk in the network.

The market also saw an ADA price rebound. ADA rose as high as $0.199 on Aug. 4, its highest level in a month. It was the first time ADA traded above $0.19 since July 4. The weekly gain was 18.17 percent, and the price was $0.1916. On-chain analytics firm Santiment said ADA’s rebound over the past seven days was among the most notable cases in a volatile altcoin market.

Despite the price recovery, holder flows were mixed. The number of Cardano wallets holding balances fell by 7,070 from two months earlier. Santiment analysed that holders who had been watching from the sidelines had not yet returned to the market in earnest even though the price rebounded.

The simultaneous rise in price and drop in the number of wallets is also drawing attention from a supply-and-demand perspective. But some in the market raised the possibility that relatively strong buyers are absorbing supply coming onto the market, while retail investors’ confidence may be failing to keep pace with the price rise.

Progress in the Cardano ecosystem’s development was also cited as a backdrop to the rebound. Santiment said the ADA rebound had a substantive basis, citing Leios testnet development, Hydra scalability improvements, a Mithril upgrade, Hyth integration and new Catalyst funding support. With improved network distribution and expanded ecosystem activity appearing together, the market is watching whether the latest price recovery can last beyond a temporary bounce.

@Cardano just set a new decentralization record Yesterday, Cardano hit an ATH Nakamoto Coefficient of 16 For users, that means stronger censorship resistance and a network controlled by many, not a few https://t.co/uXze8pTFEl pic.twitter.com/jp2k0qsybB