Cardano: Whales Accumulate While Price Consolidates
Cardano (ADA) is the 8th largest crypto asset by market capitalization and has seen various ups and downs.
After its price fell by 82% in 2022, much of the optimism around it dissipated, but now it has jumped up by 45% in 2023.
This is what an insight from Santiment had to say about the altcoin.
Whale transactions surge
Recently, Cardano has seen a massive uptick in whale transactions, with an average of approximately 1,700 transactions per day valued at $100k or more, compared to around 300 such transactions per day in January.
Since the FTX collapse in November 2022, whale and shark addresses holding 10k to 10m ADA have accumulated 659.53M ADA, which equates to $235.5M. This increase from the key holders of Cardano is a promising sign.
Investment age metric and unique daily addresses
According to Santiment’s Mean Dollar Invested Age metric, heavy investments in coins on the Cardano network demonstrate little movement. The average time coins sat in an address has increased from 267 days to 407 days in the past six months as circulation continues to struggle.
While there have been encouraging rises in the number of unique daily addresses interacting on the ADA network, the number has now sunk to about 62,000 addresses per day from 85,000 in November 2022.
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Overall outlook and trader sentiment
Based on the two-week price correction and the 2022 drop that ADA still hasn’t come close to making up for, buying in now has lower risks historically.
Although trader sentiment towards ADA is slightly negative now, it is another good sign that a price burst can blindside the jaded community. The surge in whale activity needs to be monitored, and Bitcoin must continue its uptrend for Cardano to flourish.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
