The Cardano ecosystem is currently on the brink of a major update with the impending Chang hard fork. This significant milestone comes after a recent upgrade of its node validation software, setting the stage for a pivotal moment that could shape the trajectory of the network in the coming weeks. As the Cardano community gears up for this update, there has been a notable surge in activity within the network that is worth examining closely.
Amidst this heightened activity, Cardano’s native cryptocurrency ADA has shown an interesting price performance. Over the past 24 hours, ADA has experienced positive price action, reflecting a sense of growing optimism in the market. This increase in price coincides with a rise in transaction volumes, particularly from large ADA holders or whales.
Recent on-chain data reveals that a cohort of large ADA holders has been significantly increasing their transactions, with the transaction volume reaching a peak of 17 billion ADA tokens. This surge in activity was particularly evident through a metric tracking transactions greater than $100,000 within a 24-hour period.
Despite a slight decline in the number of large transactions at the beginning of the week, a sudden spike on Friday resulted in a trading volume of 17.78 billion ADA, equivalent to $7 billion worth of tokens being exchanged among whale addresses. This heightened activity has persisted, with 15.43 billion ADA tokens worth $6.28 billion moved among large holders in the past day.
Contrary to expectations of large transfers to crypto exchanges for potential selloffs, on-chain data suggests that ADA whales have been accumulating tokens at a rapid pace. Insights from IntoTheBlock’s Large Holders Inflow metric indicate a substantial increase in token accumulation by wallets holding at least 0.1% of the circulating supply.
Over the past seven days, there has been a 579% increase in ADA token inflows into these wallets, with a 173% increase over the past 30 days. This accumulation trend has resulted in a significant rise in net flow, representing a 720.62% increase over the last week and a staggering 2580% increase over the past month. These figures indicate that large ADA holders are not only acquiring more tokens but also holding onto their existing holdings, leading to a notable net positive flow.
The accumulation of ADA tokens by large holders has largely been attributed to the upcoming Cardano hard fork, signaling the transition to the Voltaire era. Voltaire represents the final phase of Cardano’s original roadmap towards establishing a fully decentralized blockchain ecosystem.
With the Chang hard fork looming, the crypto community is closely watching these developments, eager to see how they will impact the overall landscape of the Cardano network and its market performance. Adding to the excitement are rumors that Cardano could potentially become the next cryptocurrency to secure its own Spot ETFs, following the recent approval of Spot Ethereum ETFs.
As of the time of writing, Cardano is trading at $0.4171, showing a modest 1% increase in the past 24 hours. As the network prepares for the Chang hard fork and strives towards greater decentralization, the future looks promising for Cardano and its native cryptocurrency ADA.
