Cardano had a debilitating performance after losing over 80% in the brutal bear market of 2022. But the 8th largest token has bounced back by more than 45% in 2023, reigniting hope for one of the most “polarized” crypto.
In fact, the resurgence in January might have played a role in large-scale investors going on an accumulation spree of ADA instead of dumping the asset.
Blockchain data tracker Santiment has noted an uptick in ADA’s network activity including a major rise in whale activity.
As February dawned, ADA’s whale transactions saw massive upswings. There have been an average of 1,700 transactions per day of $100k or more in such a short period of time.
The numbers represent a huge jump from the roughly $100k+ transactions per day that were occurring throughout January.
In terms of Whale & Shark accumulation, these cohorts of addresses owning 10k to 10 million ADA have accumulated 660 million ADA, which is equal to $235 million. This shift among Cardano’s major stakeholders is encouraging, per the report.
Another thing Santiment observed is that based on the price movements in 2022 and the recent two-week correction, “there is a lower risk in buying in now vs. an average time in Cardano’s history.”
ADA has registered a notable spike in whale activity in 2023 as large-scale transactions to the tune of $100k have reached last year’s May levels.
Cardano’s Whale Activity Has Skyrocketed In 2023
Not only that, but since the beginning of 2023, 36 new whale addresses ranging between 1 million- 100 million worth of ADA have flocked into the Cardano ecosystem.
As noted by blockchain analytical platform Santiment in an earlier report, historical trends revealed that the last time there were this many $100k+ ADA transactions was in May, & its price jumped over 36% from the beginning of that week until its local top in early June.
An increase in whale numbers and large transactions is certainly a positive sign for the price of ADA. This is because demand for the coin rises as more whales enter the market, thus driving up its value.
Additionally, the large transactions indicate that whales are confident in the future of the coin and are willing to make big investments in it.