Data from IntoTheBlock analytics suggests that Cardano mid-term holders who may have been accumulating at recent prices might be responsible for ADA’s buying pressure.
According to the IntoTheBlock’s holders’ composition by time held, just 7% of ADA holders have held onto their tokens for more than a year, 71% have held for a year, while 22% have held onto their tokens for barely less than a month. The greater chunk of ADA holders being short and medium-term holders might suggest that ADA may have been seeing buying pressure from this class.
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The Cardano (ADA) price is extending its rebound from lows of $1.17 reached on Feb. 3. At the time of publication, ADA was trading at $1.19, up 5.61% in the last 24 hours per CoinMarketCap data.
Cardano’s journey to scalability
Cardano remains in the foothills of the Basho phase. In a recent blog post, IOHK noted finality and concurrency as important metrics to consider when discussing scalability. It notes that TPS is probably the least meaningful metric to consider as a means of comparison as scalability is not defined in terms of a million TPS.
Kraken’s recent report notes a surge in network activity and a massive uptick in adoption since late 2020. It notes that ”Cardano saw a massive uptick in adoption starting late 2020 and throughout the course of 2021. Cardano underwent exponential growth in nearly every adoption metric listed, both on-chain and off-chain. There are now nearly 3 million wallets (1348% annual growth) on the network and over I million delegated wallets (870% annual growth).”
Since the beginning of 2022, the number of Cardano wallets has increased by roughly 13.08%, growing from 2,666,372 on Jan. 1 to 3,015,400 on Feb. 7, a total increase of 349,028.