According to U.Today, Cardano (ADA), the 10th largest cryptocurrency by market capitalization, has seen a significant increase in large holder inflows. This term refers to the funds moving into addresses held by large investors, also known as 'whales'. Data from IntoTheBlock shows a 1,218% surge in these inflows for ADA, with funds entering whale addresses increasing from 14.51 million ADA on July 8 to 110.7 million ADA on July 9. This comes after several days of stagnant inflows starting from July 5.
Large holder inflows can be an indicator of substantial buying activity, as many of these addresses purchase on centralized exchanges and then transfer their acquisitions to cold storage. They can also suggest price bottoms, as these addresses often buy in bulk following significant drops. Both scenarios could be possible for ADA given the current market conditions. The cryptocurrency market has seen considerable fluctuations recently, with ADA dropping to lows last seen in November 2023. However, the ADA price appears to be stabilizing, showing a 3.4% increase in the last 24 hours to $0.3819.
While the surge in large holder inflows could suggest potential developments for Cardano, it's important to note that large entities may also transfer out funds received for business purposes. In other news, Cardano is making progress towards its anticipated Chang upgrade, with the release of Cardano Node 9.0.0. The Chang upgrade will gradually introduce governance functionality, simplifying adoption and onboarding for those with new or additional roles in governance. The upgrade is divided into two phases. The first will add governance features to Cardano and initiate the technical bootstrapping phase, as outlined in the CIP-1694 Bootstrapping Phase. The second phase will conclude the technical bootstrapping phase and activate the final features of on-chain governance, including DRep participation and all governance actions.