The blockchain Cardano (ADA) is often criticized for the slow pace at which it develops its project. But this does not seem to worry the big investors. The latter have been piling up ADAs since the beginning of the year, according to a report by IntoTheBlock.
Whales in Cardano accumulate more and more ADA
The whales have woken up, and they’re hungry. Hungry for ADA in particular, according to a publication by IntoTheBlock, which looks back at the whales’ movements since the beginning of the year.
On the first of March, the number of ADAs held by whales reached a record 12.47 billion. Whales are defined as investors with between 1 and 10 million coins. The increase has been rapid: since the end of January, this corresponds to a 41% increase in funds accumulated by this category of holders.
A sign that the project is making progress?
According to Lucas Outumuro, the head of research at IntoTheBlock, this attraction of whales to ADA is due to the progress of the project, which has been taking smart contracts into account since last September:
“Cardano is showing promising signs for the future, after existing for years without launching smart contracts. This seems to be reflected in a build-up of ADAs from the big players.”
Moreover, the trend has reversed: the number of ADAs on whale addresses had dropped by 70% until January of this year.
This is particularly notable because over the same period, the price of Cardano’s native cryptocurrency has been trending downwards instead. Since its breakthrough on January 18, it has lost -51% of its value.
Since its all-time high in September 2021, ADA has also lost more than 73% of its value. It was once installed in the top 5 most capitalized cryptocurrencies, but is now 9th, behind Solana’s SOL and ahead of Avalanche’s AVAX.
As Lucas Outumuro notes, then, the accumulation of ADA by whales is a rather good sign, even if they can once again drive the price down, as they did last year:
“These addresses had previously sold a large portion of their holdings, just before ADA began to fall.”
So the future will tell whether Cardano will again manage to generate the excitement of last summer.