Key Takeaways:
- Prominent Cardano whales have accumulated significant amounts of ADA, with holdings ranging from 100,000 to 10,000,000 ADA.
- Cardano’s activity has increased in Q2 2023, with average daily transactions rising by 1.9% quarter on quarter.
- However, ADA’s price and market capitalization experienced fluctuations.
YEREVAN (CoinChapter.com) — As of late, things have been looking up for prominent Cardano whales who accumulated significant amounts of its native token ADA. The amount of said ADA fluctuates in the range of 100,000 and 10,000,000 according to the crypto analytics platform Santiment.
So let’s dive and see what’s behind this Cardano whale dynamics and how the crypto is faring.
Whales Reportedly Hold About $39M In ADA Tokens
Over the past month, large Cardano investors reportedly amassed about 130 million ADA tokens, roughly equivalent to about $39 million. However, this accumulation happened amidst a price dip where ADA’s price went from $0.314 to $0,301 in one instance.
🐳🧐 As #Cardano sits just above $0.29, whales and sharks holding between 100K-10M $ADA have accumulated back to their highest level since September, 2022. Additionally, #onchain transaction volume has been rising nearly every week for the past 6 months. https://t.co/x9mUHDIhnx pic.twitter.com/X9WphDpPvy
— Santiment (@santimentfeed) August 8, 2023
Transaction Volume Rises, But It’s Not That Simple
Cardano’s transactions activity increased in Q2 2023, as Messari’s report indicates. Moreover, average daily transactions were up 1,9% quarter on quarter, from 67,500 to 68,800. The report additionally states that the average user is more active.
This user activity has been growing over the past five quarters. In conclusion, the transaction and active address ratio 1.19 increased 6,1% QoQ and 13,2% YoY respectively. However, daily active addresses declined for four quarters; in Q2, it declined by 4%.
ADA Shows An Overall Positive Return Of 12%
In Q1, the price of ADA and its market capitalization had increased by 53.5%.
However, in the following quarter (Q2), there was a decline of 26.9% in its price compared to the previous quarter. Despite this decline, when considering the performance from the beginning of the year (Year-to-Date or YTD), ADA still shows a positive return of 12.0%.
Cardano Developers Saw A Decline In Numbers
On the other hand, over the last month, core developers decreased on the network by 7.1%. In the meantime, code commits saw a 5,1% reduction in the past month.
The Fluctuations Of The NFT And Growing DEX Volumes
The NFT market on the Cardano network underwent fluctuations, particularly evident in the reduced volume of NFTs sold across various marketplaces. This decrease in NFT sales volume suggests a potential shift in demand for these distinctive digital assets.
Moving on to the Decentralized Finance (DeFi) landscape within Cardano’s ecosystem, the Total Value Locked (TVL) in DeFi protocols experienced a decrease.
This decline in TVL indicates a waning interest in the overall Cardano ecosystem from the DeFi perspective. However, contrasting this, data from Artemis reveals growth in decentralized exchange (DEX) volumes.
Cardano Whales See Promise In ADA
Long-term holders and investors might put faith in the ecosystem because Cardano developed slowly but surely. One of the motivations also can be the desire to elevate ADA back to a mid-April price point after an early June 2023 price dip.
