Large investors, known as whales, appear to be bargain-hunting Cardano's ADA token as the programmable blockchain's decentralized finance (DeFi) protocols see rapid growth.
The balance held by addresses with 1 million to 10 million coins rose to a record 12 billion ADA ($9.72 billion) last week, a 41% gain since late January, data provided by blockchain analytics firm IntoTheBlock show.
The total value locked in the Cardano network has increased by $50 million in a week, hitting a lifetime high of $160.79 million, according to Defi Llama. More than 70% of the funds are locked in decentralized exchange (DEX) SundaeSwap.
"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," Lucas Outumuro, head of research at IntoTheBlock, said in a weekly report published on Friday.
"After years of lacking smart contract capabilities, Cardano is starting to show some traction in its application layer," Outmuro noted. "DEXes on Cardano have raised capital from reputable crypto funds such as Three Arrows Capital."
Last week, Cardano-based DEX AdaSwap announced a $2.6 million fundraise led by venture capital firm iAngels and several other investors, including actor and producer Gal Gadot and her husband Jaron Varsano.
Whale holdings have increased by over 40% this year. "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," Outumuro said.
The renewed interest by large investors may be a sign of good times ahead, assuming the broader market finds a footing. Whale selling in early September turned out to be an advance indicator of a price slide. "These [whale] addresses had previously sold a large amount of their holdings right before ADA began to crash," Outmuro noted.
ADA peaked above $3 on Sept. 2 and has lost more than 70% since then. The ninth-largest cryptocurrency by market value was last trading near $0.8080, a 5% drop on a 24-hour basis.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.