Lele Jima
While small cryptocurrency traders continue to sell their cryptos, Cardano whales have been accumulating ADA at lower prices as they expect an imminent surge in the coin’s price.
The past few weeks have seen the prices of many cryptocurrencies plummet tremendously. Cryptocurrencies such as Bitcoin (BTC), Cardano (ADA), Ethereum (ETH), Solana (SOL), among others were not spared by the dip that has rocked the cryptocurrency market in the past few weeks.
Conflict of Interest Between Small and Large ADA Traders
Over the last 30 days, Cardano traders have seen the value of ADA plummet from a high of $1.22 recorded on April 4, 2022 to a low of $0.76.
The bearish price of ADA has deterred many traders from increasing their holdings in the ninth-largest cryptocurrency by market capitalization.
While many people, majorly small traders, have decided to remain safe by converting their ADA holdings to stablecoins, whale investors see the price dump as the perfect opportunity to increase their Cardano holdings.
Massive Whale Purchase
According to data published by Santiment Feed, a cryptocurrency data analytics platform that analyzes over 2,000 cryptocurrencies, Cardano whales holding between 1 million and 10 million ADA have steadily racked up more ADA in the past five weeks.
Santiment disclosed that addresses in this category have accumulated a massive 196 million ADA in the last five weeks, as a majority of these whales took advantage of Cardano’s price dip.
It is worth noting that the stunning feat came after these whales dumped a combined 1.7 million ADA.
“#Cardano whale addresses holding 1M to 10M $ADA are accumulating their bags these past 5 weeks (196M more $ADA) after a 7-month stretch of dumping (-1.7M less $ADA). The 9th largest market cap asset recently hit prices last this low in February, 2021,” Santiment Feed reports.
🐳📈 #Cardano whale addresses holding 1M to 10M $ADA are accumulating their bags these past 5 weeks (196M more $ADA) after a 7-month stretch of dumping (-1.7M less $ADA). The 9th largest market cap asset recently hit prices last this low in February, 2021. pic.twitter.com/OXpbu3KSXp
— Santiment (@santimentfeed) May 3, 2022
ADA Expected to Surge After Hydra Upgrade
Cardano may not be moving in the direction many expected at the beginning of the year, but the cryptocurrency is considered to be highly undervalued at its current price, especially with the type of activities lined up for the coin.
As reported, since the Cardano team introduced smart contract functionality, developers have adopted blockchain, building trending decentralized applications (dApps) that have lured more crypto enthusiasts into the Cardano ecosystem.
While a handful of developers are currently building on the blockchain, Cardano founder Charles Hoskinson disclosed that the Hydra upgrade slated for next month will lure more developers to the platform, thus increasing ADA’s utility and also boosting the value of the cryptocurrency.
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