Alongside the rest of the cryptocurrency market, Cardano also witnessed a lackluster month. But certain cohorts of high-profile investors have been slowly amassing significant amounts of ADA tokens.
Cardano whales – those holding between 100 million and 1 billion ADA – have added 11% to their balances in the past month, according to ITB’s latest findings.
ADA Whales Adds More Tokens
The latest surge indicates a growing confidence or strategic positioning among large ADA holders. As of now, this cohort of ADA investors commands 6.71% of the entire token supply. Such an insight highlights the whales’ substantial influence within the Cardano ecosystem.
Cardano whales holding between 100m and 1b $ADA have added 11% to their balances over the past 30 days.
This group now holds 6.71% of the entire $ADA supply. pic.twitter.com/nSe4lXE96R
— IntoTheBlock (@intotheblock) May 15, 2024
Over recent weeks, there has been a gradual increase in Cardano whale activity as reported earlier. Historically, such rises in whale activity have been associated with potential price reversals, suggesting shifts in market sentiment.
However, contrary to this trend, ADA has closely mirrored the broader market movement, which saw a modest recovery on Thursday. ADA surged by nearly 6% in the past 24 hours, reaching $0.456 at the time of writing.
Experts believe that ADA could mirror its 2021 surge even targeting $7.80 level. Further bullish predictions suggest that the world’s 10th largest cryptocurrency by market cap might reach short-term levels near $1.70 and potentially ascend to a “parabolic” peak of $10, thereby reflecting strong confidence in its growth prospects.
Earlier this week, speculation about Gemini potentially listing ADA also surged following a popular post from the exchange. If the US-based cryptocurrency exchange proceeds with listing ADA, it could trigger a significant price rally for the token.
Cardano’s User Activity
Despite optimistic price projections, user activity on the Cardano network has been declining since March this year. Data compiled by Artemis shows that daily transactions on the network have decreased significantly, currently hovering around 50.7k compared to almost 96k recorded two months ago.
Additionally, daily active addresses have followed a similar trend, briefly dipping below 24k this month. These declines in user activity raise concerns about the network’s current usage and adoption rates despite the positive sentiment surrounding Cardano’s price potential.
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