Cardano, the cryptocurrency, appears to be experiencing a relatively calm period. However, a group of large ADA holders, known as whales, have been steadily accumulating ADA tokens. Recent data from IntoTheBlock reveals that Cardano whales, who own between 100 million and 1 billion ADA, have increased their holdings by 11% through transactions made last month.
The fact that whales are buying more ADA could suggest growing confidence or strategic moves from major ADA investors. Currently, this group of investors holds 6.71% of the total supply, highlighting the significant influence they have on the Cardano ecosystem.
In recent weeks, there has been a gradual increase in whale activity, which has historically been associated with potential price reversals and changes in market sentiment. However, contrary to this trend, ADA has shown a modest recovery, in line with the broader market movement. At the time of writing, ADA was trading at $0.4594, with a 1% increase in the last 24 hours.
Experts believe that ADA could reach $7.80, similar to its rise in 2021. Other bullish predictions suggest that ADA, currently ranked 10th by market capitalization, could reach around $1.70 and potentially peak at $10 in a “parabolic” fashion. These predictions reflect notable confidence in the growth potential of Cardano.
The speculation surrounding Gemini exchange listing ADA earlier this week has had a positive impact on the cryptocurrency. If ADA is listed on this US-based crypto exchange, it could trigger significant price movement for the token.
However, despite these positive price predictions, user activity on the Cardano network has been declining since March of this year. Data compiled by Artemis shows that daily transactions on the network have significantly decreased, currently averaging around 50.7 thousand compared to approximately 96 thousand two months ago. Additionally, daily active addresses have followed a similar trend, briefly falling below 24 thousand this month. These declines in user activity raise concerns about the current usage and adoption rates of the network, despite the positive sentiments surrounding Cardano’s price potential.
It is important to note that the information in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and conduct their own research.
