The Cardano ecosystem is on the brink of a major update with the upcoming Chang hard fork. This crucial moment is preceded by a recent upgrade of its node validation software, setting the stage for a significant milestone in Cardano’s development. The network is currently experiencing a surge in activity as it prepares for the update, signaling a potentially pivotal moment that could shape its trajectory in the weeks to come. Amidst this heightened activity, ADA, Cardano’s cryptocurrency, has demonstrated a noteworthy price performance.
In the past 24 hours, ADA has shown positive price action, reflecting a surge in market optimism. This uptick in price is attributed to increasing transaction volumes, particularly from whales or large ADA holders. Recent on-chain data indicates that these large holders have ramped up their transactions significantly, with a peak transaction volume of 17 billion ADA tokens. The number of large transactions had initially been declining since the start of the week but saw a spike, creating a trading volume of 17.78 billion ADA on Friday, amounting to $7 billion worth of tokens exchanged among whale addresses. The heightened activity persists, with 15.43 billion ADA tokens worth $6.28 billion moved among large holders in the past 24 hours.
While the surge in activity and trading volume might suggest large transfers to crypto exchanges for potential selloffs, on-chain data paints a different picture. Insights from IntoTheBlock’s Large Holders Inflow metric reveal that ADA whales have been accumulating tokens at a rapid pace. This metric tracks the influx of ADA tokens into wallets holding at least 0.1% of the circulating supply, providing insight into large holder behavior. The data shows a 579% increase in inflows over the past seven days and a 173% increase over the past 30 days. Additionally, there has been a significant rise in net flow, accounting for both inflow and outflow from large addresses. There has been a remarkable 720.62% increase in net flow over the last seven days and a staggering 2580% increase over the past 30 days. These figures indicate that large holders are not only acquiring more ADA but are also holding onto their tokens, resulting in a substantial net positive flow. This trend signifies a strong accumulation phase among ADA whales, showcasing their growing confidence and long-term commitment to the Cardano network.
Much of this accumulation can be attributed to the imminent Cardano hard fork, which will mark the beginning of the Voltaire era in Cardano’s roadmap towards creating a fully decentralized blockchain ecosystem. As the Chang hard fork approaches, 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. Additionally, rumors have surfaced that Cardano might be the next cryptocurrency to secure its own Spot ETFs, following the recent approval of Spot Ethereum ETFs. At present, Cardano is trading at $0.4171, reflecting a 1% increase in the past 24 hours.
This surge of activity and accumulation among ADA whales signals a growing interest in Cardano and its potential for long-term growth and development within the cryptocurrency space. As the network edges closer to major updates and milestones, all eyes are on Cardano and how it will continue to evolve in the coming weeks and months.