Cardano’s (ADA) price has skyrocketed in 2023, soaring more than 65% higher and showing no signs of slowing down. This impressive rise can be largely attributed to key players in the crypto market, namely sharks and whales, who are accumulating large amounts of ADA.
In recent days, addresses holding between 100,000 and 100 million ADA have seen an increase in the number of coins stored in their combined wallets, hitting levels not seen since November 8th. Today, the number of $100k+ whale transactions reached a 12-week high, according to data from santiment.
However, the increased accumulation by these large investors, commonly referred to as whales, has had a significant impact on Cardano’s price growth. Their large investments drive demand for the cryptocurrency, leading to price increases and attracting even more investors.
It is a clear indication that major players in the market are taking a serious interest in Cardano and driving up its value. As more and more people seek to diversify their portfolios and invest in cryptocurrencies, its strong performance and increasing popularity make it a strong contender for those looking to invest in the crypto market.
Cardano Price Soars, Additional Factors
According to the CoinMarketcap, ADA is currently trading at $0.404 with a slight rise in the daily chart and 5.74% growth in seven days chart. Additionally, the price has seen a 50% increase in the last 30 days and 10% over the previous 14 days.
Cardano (ADA) has seen a significant price surge due to key market players accumulating the cryptocurrency. While the boost can also be attributed to macroeconomic events and the broader financial markets, along with the recent launch of the overcollateralized stablecoin, Djed, on the Cardano mainnet.
Since its launch, 1.85 million DJED have been minted, although its growth has been modest so far, with a total value locked (TVL) of $11.67 million, according to DefiLlama’s data.
Djed is designed to use the volatility of ADA to create a stablecoin pegged to the USD, making ADA a reserve currency. The stablecoin’s reserve ratio of 633% gives it the potential to impact ADA’s price by creating a supply shortage.
However, with only 29.4 million ADA in the Djed reserve, it hasn’t yet reached the volume needed to impact the price significantly. Its total circulating supply is 34.6 billion ADA, so it remains to be seen whether Djed can continue to grow and drive a supply shortage for ADA.
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