In 2022, major investors increased their coin holdings by over 40%.
With the programmable network’s decentralized finance (DeFi) protocols undergoing significant expansion, crypto whales seem to be gunning for Cardano’s ADA coin.
According to data given by IntoTheBlock, the blockchain analytics company, the amount kept by addresses with 1 million to 10 million Cardano (ADA) reached a new high of 12 billion Cardano (ADA), equivalent to $9.72 billion the other week. Since the last week of January, this constitutes a 41% increase.
As per Defi Llama, the overall value held in the Cardano network has climbed by $50 million within a week’s time, reaching a record high of $160.79 million. SundaeSwap, a decentralized exchange (DEX), holds over 70% of the cryptocurrency.
In a status report released last week, IntoTheBlock’s head of research, Lucas Outumuro, stated that:
“Cardano appears to be showing signs of promise for more to come after years without launching smart contracts. This appears to be translating into an accumulation of ADA from large players.”
Cardano is getting popular in its application layer after years of being devoid of smart contract features, said Outumuro, also adding that “DEXes on Cardano have raised capital from reputable crypto funds such as Three Arrows Capital.”
The week before, AdaSwap, the Cardano-based decentralized exchange (DEX) launched a $2.6 million fund round sponsored by iAngels and many other investors. Among the famous investors also include celebrity couple Gal Gadot and Jaron Varsano.
I'm glad to welcome Wonder Woman to the Cardano Family https://t.co/ddeDPX7YI0
— Charles Hoskinson (@IOHK_Charles) March 2, 2022
Outumuro confirmed that “following a 70% correction, these addresses have now been accumulating aggressively. This group, as well as those holding over 100M ADA, recorded double-digit growth month over month.” Since 2022 has begun, stocks of major investors have risen by more than 40%.
Large investors’ newfound interest could be a hint of better events to come, providing the larger market regains its balance. In September, major whales liquidated the cryptocurrency which ultimately proved to be an early warning sign of a decline in the value of Cardano (ADA).
In this regard, Outumuro argued that “these [whale] addresses had previously sold a large amount of their holdings right before ADA began to crash.”
ADA reached an all-time high of $3 on the 2nd of September in the Alonzo hard fork launch aftermath and has since lost over 70% of its value. The 9th cryptocurrency by market capitalization was changing hands at roughly $0.8080, as in the last 24 hours it incurred a 5% decline.