Cardano (ADA) is currently experiencing a surge in large transaction volume, putting it in direct competition with Ethereum. This increase in activity is a positive development for the ADA ecosystem, indicating a wave of accumulation among the token’s large holders. Data from market intelligence platform IntoTheBlock reveals that Cardano has recorded a large transaction volume of $6.7 billion in the last 24 hours, nearly matching Ethereum’s volume of $6.71 billion. This trend suggests that Cardano whales have been actively adding more tokens to their positions, especially with the market currently experiencing a dip. These investors are anticipating a much-awaited price rally for ADA.
Further data from IntoTheBlock confirms the uptick in whale activity, showing a significant increase in large holders’ net flow over the last seven days. Wallets holding significant amounts of ADA tokens, ranging from 100,000 to 10 million, collectively purchased 120 million ADA tokens between July 17 and August 1. As a result, these wallets now hold over 5.69 billion ADA tokens. The accumulation of tokens by these large holders signifies a bullish outlook for the Cardano ecosystem. Their actions have the potential to influence market prices and could lead to a substantial surge in ADA’s price, providing a much-needed boost for the token.
The increased activity among Cardano whales signals a positive trajectory for the cryptocurrency, especially considering its lackluster performance since the beginning of the year. Cardano has incurred a year-to-date loss of over 35% and has become one of the most shorted altcoins due to its underwhelming price action. However, analytics platform Santiment suggests that a significant turnaround for ADA is plausible, as the high level of shorting increases the likelihood of liquidations driving price pumps. These liquidations could serve as “rocket fuel” for a potential price rally for Cardano, offering hope for investors and holders.
Despite several bullish developments within the Cardano ecosystem this year, including the announcement by the US Securities and Exchange Commission (SEC) that ADA is not considered a security, the token has failed to experience a significant rally. The transition to the Voltaire era through the Chang Hard Fork aims to introduce Cardano’s most advanced governance system yet. However, even with these positive updates, ADA’s price has remained relatively stagnant. The release of node validator software, version 9.1.0, incorporating the Chang Hard Fork, did not have a significant impact on ADA’s price movement, highlighting the need for more substantial market influences to drive a sustainable price rally.
The recent surge in large transaction volume and whale activity within the Cardano ecosystem presents a promising outlook for the cryptocurrency. The accumulation of tokens by large holders and the potential for a price rally fueled by short squeezes could lead to a significant uptick in ADA’s price. As Cardano continues to evolve and implement innovative governance systems, it remains to be seen whether these developments will translate into sustainable growth and market appreciation for the token.
