On-chain activity shows participation from large investors and institutions, suggesting that the price increase may have durability.
Cardano's ADA has reached its highest level since May 2022.
On-chain activity indicates that large traders are participating in the price increase.
As Bitcoin (BTC) approaches the $100,000 threshold for the first time (breaking $99,000 earlier on Friday), capital is shifting towards alternative cryptocurrencies, creating a stir in the broader cryptocurrency market.
Amid cheers, the native cryptocurrency ADA (ADA) of the proof-of-stake smart contract blockchain Cardano is experiencing a glorious moment. The token surged by 10% in the past 24 hours, trading at 90 cents on Coinbase and other exchanges earlier on Friday. According to data from CoinDesk Indices, this is the highest price since May 2022.
This week's price increased by 22%, and the monthly increase so far has reached 152%. This has raised the market capitalization of the token to $30.85 billion, making it the tenth largest digital asset in the world. In comparison, the CoinDesk 20 index (CD20), which measures the overall cryptocurrency market, rose by 14% this week and 58% this month.
The rise of ADA is accompanied by continued accumulation by whales, who hold over $10 million worth of tokens. According to Tagus Capital, whales currently hold over $12 billion worth of ADA.
On-chain activity confirms the participation of whales and institutions, indicating that this rally may have lasting power. Data from analysis firm IntoTheBlock shows that the number of large transactions involving ADA surged by 300% in two weeks.
Tagus Capital noted in its daily newsletter that this is a sign of 'increased interest from institutional investors' and pointed out the surge in large transactions. 'As previously noted, this momentum is partly driven by sentiment, with Cardano's founder Charles Hoskinson hinting at potential cooperation with the Trump administration to formulate crypto-friendly policies.'
