Cardano short-term holders have already accumulated 1 billion ADA in just 30 months, and the surge in the number of holders indicates growing confidence in the assets.
Short-term #Cardano holders (STHS) have significantly increased their holdings, adding more than 10 billion #ADA since March 30.
This surge coincided with a broader market recovery, allowing Cardano (ADA) to regain the all-important ¥1 price level, but the historical picture raises some concerns about potential volatility.
STHs currently own about 90 million ADA worth about $884 billion in 2000, the highest in 8 months.
This increase shows that traders who have owned ADA for less than a month have bought about 3.15 billion worth of ADA this month alone, up from 5.27 billion in 11/5.
This date is particularly notable because it coincides with a bullish market trend triggered by Donald Trump's election victory, which catalyzed significant hoarding by short-term investors.
But history shows that spikes like STH stock numbers often precede price corrections.
For example, in 2022, when ADA peaked at 1.53 yen, STH increased its assets to $110 billion, but shortly thereafter the price fell to 0.82 yen. Similarly, in 2023/3 ADA jumped to 0.75 yen, but after STH's balance sheet increased to 8.4 billion yen, the price was corrected to 0.45 yen within a few weeks.
This pattern has led many of these short-term investors to fear missing the point (FOMO) and try to enter the market during price spikes, which often results in lower prices.
On a more positive note, there are signs that Cardano whales are also active in the market.
When these large holders buy ADAs sold by short-term investors during price declines, it helps to write down assets after significant declines.
additionally, recent data shows a surge in activity on the cardano network. Over 840000 transactions and fees have reached 279,000 per day, the highest since 2022/3.
ADA is currently trading at 1.06, reflecting an increase of 6.6% in the last 24 hours.
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