What to know:
- Cardano whale wallets reach a four-month high of 424, up 5.2% in nine weeks.
- SEC and CFTC classify ADA as a digital commodity, boosting institutional confidence.
- Whales owning over 1 million ADA have accumulated 1.41 billion tokens since November 2023.
Cardano has seen increased activity from institutional investors, indicating a growing belief in the token amid sluggishness in the overall altcoin market. There have been consistent increases in on-chain activity from wallets holding substantial amounts of tokens, accompanied by accumulation from whales.
According to data from Santiment, the number of wallets that have more than 10 million ADA has reached 424, which is the highest figure since April. There is an increase of 5.2% in the last 9 weeks. It indicates that big players are slowly increasing their investments.
Source: Sentiment’s X Post
Although ADA is still largely moving along the overall trend of the altcoin market, it has managed to bounce back by approximately 11% from its lows on February 5. This may mean that there is increased buying interest from large players.
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Whale Buying Helps Hold Key Support
In early April, big players bought 220 million to 300 million ADA, according to different reports. These buys occurred mainly in the range of $0.24-$0.25, which helped the coin retain its support level of $0.23-$0.24 even as the entire crypto space was under selling pressure.
The process happens when small investors withdraw from the market due to uncertainties, allowing the big money bags to purchase stocks at reduced costs. The reason for this is that ADA is currently more than 90% below its $3.10 record high price.
Cardano Gains Regulatory Approval Momentum
Both the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission considered ADA to be a digital commodity in March. This decision mitigates previous worries about regulatory issues and could allow for increased institutional involvement.
In parallel, Cardano launched Midnight Mainnet, a sidechain that provides privacy capabilities. It is geared toward applications like financial regulations, digital identity, and smart contracts based on zero-knowledge proofs.
Large companies such as Google Cloud and Worldpay are part of the ecosystem now as operators. Funding from the creator of Cardano, Charles Hoskinson, has also been pledged for the expansion of the network.
Cardano Whale Activity Fuels Gains
Whales continue to exert a significant influence on ADA’s price trend. As per the earlier figures released by Santiment, whales owning more than 1 million ADA have purchased 1.41 billion ADA since late November 2023. During this timeframe, ADA has witnessed a 107% rise in price owing to consistent accumulation.
During March, massive deals temporarily saw ADA trade for $1.13, reflecting the most significant transfer activity witnessed in more than three months. This period saw an increase in the token’s circulation and a decrease in its average holding period.
DeFi Activity Remains Limited
Despite increasing interest from whales, the decentralized finance ecosystem of Cardano is still small in comparison. According to DeFiLlama, the TVL for the blockchain is currently around $132 million.
Source: DeFiLlama
The total amount of stablecoins held is estimated at around $49.2 million, with USD Coin taking a major chunk. This implies that a sizable amount of money is lying idle and not in use.
Activity on Cardano’s decentralized exchange platforms is also weak. The daily volume amounts to about $1.38 million, which represents a drop of 25% from last week. Perpetual trading volumes stand at roughly $1.08 million in 24 hours.
Overall, the increase in whale wallets and consistent buying at important support levels is ensuring that the ADA price remains stable amid market uncertainties. But with the majority of ADA tokens held by whales, they have potential control over the price trends in the short term.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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