According to a new survey from a blockchain analytics firm, addresses owning Cardano (ADA) have surged to previously unheard-of levels as Whales opted to accumulate following Cardano’s continuous slide, making it cheaper.
Since its all-time highs in early September 2021, the Cardano network cryptocurrency ADA has experienced turbulent times due to the sluggish start to life of Cardano smart contract deployment and other variables.
Whales, on the other hand, appear to be on the lookout for a bargain in Cardano’s ADA token, as the programmable blockchain’s decentralized finance (DeFi) protocols see tremendous growth.
The balance held by addresses with 1 million to 10 million coins reached a new high of 12 billion ADA ($9.72 billion) last week, a 41 percent increase since late January according to data given by blockchain analytics firm IntoTheBlock.
According to Defi Llama, the overall value of the Cardano network has climbed by $50 million in the last week, reaching a lifetime high of $160.79 million. SundaeSwap, a decentralized exchange (DEX), holds more than 70% of the funds.
“Cardano appears to be showing signs of promise for more to come after years without launching smart contracts. This appears to be translating into an accumulation of ADA from large players,” Lucas Outumuro, head of research at IntoTheBlock, said in a weekly report published on Friday.
“After years of lacking smart contract capabilities, Cardano is starting to show some traction in its application layer,” Outmuro noted. “DEXes on Cardano have raised capital from reputable crypto funds such as Three Arrows Capital.”
This year, whale stocks have risen by more than 40%. “Following a 70% correction, these addresses have been aggressively accumulating. This group, as well as those holding over 100M ADA, recorded double-digit growth month over month,” Outumuro said.
Large investors’ newfound interest could be a hint of better times to come, providing the larger market regains its footing. Whale selling in early September proved to be an early warning sign of a price drop.
ADA reached a high of $3 on September 2 and has since lost more than 70% of its value. The ninth-largest cryptocurrency by market capitalization was last trading near $0.8080, down 5% in the last 24 hours.