Cardano (ADA), the cryptocurrency associated with the famous Proof-of-Stake (PoS) blockchain, is recording a strong breakout as the price reaches its highest level since May 2022. This price increase is linked to significant activities from institutional investors and whales, who hold a large amount of ADA.
Strong Price Growth
On Friday morning, ADA was trading at $0.90, up 10% in just the last 24 hours on Coinbase and many other major exchanges. The increase over the past week reached 22%, bringing the total growth since the beginning of the month to an impressive 152%. Currently, ADA's market capitalization is $30.85 billion, making it rise to the 10th position in the list of the highest valued digital assets in the world.
ADA's recovery is happening simultaneously with growth across the entire crypto market. Bitcoin (BTC), the leading asset in the industry, is approaching the $100,000 mark, causing a strong capital shift towards alternative coins (altcoins) like ADA.
The Role of Whales and Institutional Investors
According to data from analytics firm IntoTheBlock, the number of large transactions related to ADA has increased by 300% in just the past two weeks. This shows the active participation of institutional investors and individuals holding large amounts of ADA (over $10 million). The total value of ADA held by whales has now exceeded $12 billion, an impressive figure reported by Tagus Capital.
Tagus Capital notes that the participation of large investors is a clear sign of sustainable prospects for this growth phase of ADA. Besides market factors, the positive sentiment is also driven by recent hints from Charles Hoskinson, the founder of Cardano, about the possibility of collaborating with the government of President Donald Trump to propose more crypto-friendly policies.
Prospects for Cardano
In addition to the price growth factor, Cardano's on-chain activity has also increased significantly, reinforcing investors' confidence in the long-term future of this currency. Strong accumulation from whales, along with positive signals from the market, indicates that ADA is not only breaking out in the short term but may also maintain its growth momentum in the future.
However, with this strong growth momentum, analysts also warn to closely monitor profit-taking moves from whales and large investors, as this could cause strong volatility in the near future.