On Tuesday (14 February 2023), crypto analytics firm Santiment took a closer look at Cardano ($ADA), currently the 8th most valuable cryptoasset by market cap.
Santiment says that the price of ADA dropped significantly in 2022, causing a decrease in optimism among its supporters, but has since seen a 45% increase this year.
According to Santiment’s blog post, which was published earlier today, there are several positive and negative metrics to consider when assessing the current state of Cardano.
On the positive side, the number of “whale transactions” (valued at $100k or more) has increased dramatically, with an average of 1,700 transactions per day in February compared to 300 in January. Additionally, whale and shark addresses holding 10k to 10m ADA have accumulated 659.53M ADA, worth $235.5M, since the FTX collapse in November 2022. The current average trader returns being in negative territory also suggest a lower risk for buying into Cardano now.
However, there are also some negative metrics to take into account. The amount of time that coins sit in an address has increased significantly, with the average rising from 267 days to 407 days over the past six months. Furthermore, the number of daily active addresses interacting with the ADA network has decreased, falling from 85,000 in November to 62,000 now.
Overall, Santiment believes that there is more to be optimistic about than pessimistic in regard to Cardano. Additionally, trader sentiment towards ADA is currently slightly negative, which could indicate that a price burst could surprise the market.
Featured Image via Pixabay
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