Despite sinking to a record low level amidst a wider market crash earlier this year, ADA whales appear optimistic about the crypto asset’s price.
Lower Price Attracts Accumulation
According to the crypto analytic platform, Santiment, Cardano whale addresses holding 1 million to 10 million ADA have been heavily accumulating over the past five weeks despite its price hovering near 15-month low levels. Altogether, this cohort of investors has added almost 200 million ADA into their bags.
🐳📈 #Cardano whale addresses holding 1M to 10M $ADA are accumulating their bags these past 5 weeks (196M more $ADA) after a 7-month stretch of dumping (-1.7M less $ADA). The 9th largest market cap asset recently hit prices last this low in February, 2021. https://t.co/co8BcqHJAF pic.twitter.com/OXpbu3KSXp
— Santiment (@santimentfeed) May 3, 2022
The change in whale sentiment comes after months of dumping ADA tokens which drove the price of the ninth-largest cryptocurrency down by 75% since its peak in September 2021 to a February low. A spike in buying pressure could essentially mean that the whales are eyeing potential recovery in the near term. This demand barrier could act as a formidable support floor at $0.8.
Cardano picked up significant network activity in the first quarter of the year. Large transaction volume (LTV) on the blockchain suggested a rise in institutional demand.
Since the beginning of the year, the LTV rose from 1.35 billion ADA per day to 69 billion ADA changing hands on Cardano, more than a 50x increase in just three months. This was revealed by yet another prominent analytic platform, IntoTheBlock. In fact, a 216% hike in transaction volume was seen in the past year. However, the latest data compiled by ITB depicts that the metric has slumped since April.
Other Important Metrics
While active addresses have remained stagnant, the number of native tokens on the Cardano blockchain has seen a rise, according to the Cardano Blockchain Insights dashboard. Its TVL, on the other hand, settled near $259 million after scoring a high above $434 million in March.
In a recently shared statistics regarding network growth, IOHK revealed that currently, 925 projects are being built on top of it. NFT collections dominate the chart with a massive 46.6%, while trailing behind are – NFT marketplaces, metaverse projects, DeFi, gaming, lending, DEX with 4.1%, 3.4%, 1,9%, 4.2%, 1.7%, and 3.8%, respectively.
— Input Output (@InputOutputHK) May 2, 2022
Cardano’s founding company also announced a new upgrade that enhances its block size by 10%, from 80KB to 88KB. Besides increasing the network’s throughput, the latest implementation is expected to scale the performance of decentralized applications building atop the blockchain.
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