The number of addresses holding Cardano ($ADA) for the long-term has grown by 32.1% last month to 408,000, after growing by 10.9% in January and 5.78% in December, suggesting HODLers keep on accumulating the cryptocurrency.
According to CryptoCompare’s latest Asset Report, the number of addresses holding ADA grew 5.9% to a new all-time high in February largely thanks to a rise in long-term holders and a 13.4% rise in cruisers, which went up to 3.62 million addresses. The number of traders on the network dropped 25.2% to 770,000.
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The report details, however, that the number of monthly transactions on the Cardano blockchain fell 28% to 2.73 million last month as the “excitement of the launch of SundaeSwap fades” while an uncertain macroeconomic environment is still present. The number of daily active addresses on the network also dropped 20.6% to 129,000.
SundaeSwap is a “native, scalable decentralized exchange and automated liquidity provision protocol” that is backed by cFund, Alameda Research (a quantitative cryptocurrency trading firm and liquidity provider founded by FTX CEO Sam Bankman-Fried); and Double Peak Group (“a family office focused on investments in the digital asset and blockchain space”).
It currently leads Cardano’s decentralized finance space by total value locked and is followed by Minswap, which recently saw its total value locked jump 400% in a week. While DeFi activity on the network has been growing, the price of ADA recorded six straight months of losses.
CryptoCompare’s report notes that the cryptocurrency failed to capture its 50-day moving average after retesting it in February, and remains below its 200-day moving average, which has been acting as a key resistance level since the second half of 2021.
Whales on the cryptocurrency’s blockchain, as reported, have been on a buying spree to the point that their holdings have risen by more than 40% so far this year. Cardano addresses holdings between 1 million and 10 million ADA have seen their balance rise to a record 12 billion ADA, worth over $10 billion.
Notably, last month Singapore-headquartered cryptocurrency trading platform Bitrue added ADA as a base currency on its exchange, with the launch of nine new trading pairs.
A base currency, it’s worth noting, is the first currency appearing in a currency pair. It represents how much of the second currency – the quote currency – is needed to get one unit of a base currency.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured image via Unsplash
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