Cardano’s ADA started the new year with a stunning +30% rise since Dec 30th, data from Santiment highlighted.
Its key on-chain metrics includes addition of 28 new Whale Addresses and a rising Trade Volume that has tapped an all-time-high in 2 months.
Cardano has now jumped an impressive +30% since December 30th. Since the start of the rally, 28 new addresses have popped up on the network that holds 1M or more ADA. Trading volume has hit a 2-month high, including increasing large whale transactions.
The primary reason that has driven investors interest is the surging activity among key decentralized applications on the Cardano network.
According to on-chain data, activity on decentralized applications [dapps] built on Cardano grew over the weekend.
For instance, NFT marketplaces like Spacebudz and EpochArt saw a 200% rise in transaction volumes over the previous week, whilst decentralised finance [DeFi] protocols SundaeSwap and Lending Pond saw a 60% increase in transactions over the same time period.
Large ADA investors had sold some of their holdings around the end of 2022, when the crypto market’s enthusiasm was waning. This was not unusual because selling and profit-taking have usually been sparked by the holidays.
Cardano Whales Kickstart 2023 With Massive Accumulation
Over 560 million ADA has been sold by the Cardano whales during that time. This led to increased selling pressure on the digital asset, which caused its price to drop to below $0.25, its lowest level since early 2021.
As Santiment previously noted, this saw the total holdings of investors holding between 1 million and 100 million ADA on their balances dropped drastically just as 2022 came to an end.
The fact that these cohort of large scale holders have already started buying back the tokens they had dumped, however, suggests that this investor class has come into the new year with newfound enthusiasm.
According to the study, these significant investors increased their holdings by more than 217 million ADA in the first five days of 2023. This increased the amount of supply that they currently hold back by 57%, which isn’t the highest it’s ever been but is still a positive result.
The leading proof-of-stake project is exchanging hands at $0.31 and has risen by over 24% on the weekly index, at press time. ADA is currently the 8th ranked token with a market cap of $10 billion.