The latest development in the Cardano market has been a rather remarkable indicator. The number of large investors, called whales, among crypto investors holding ADA in their portfolios has fallen to its lowest level ever.
According to Santiment data; While the number of investors holding more than 100 thousand dollars worth of Cardano (ADA) in 2021 accounted for 94 percent of the total supply, it is seen that this rate has now been pulled towards 83 percent. A 14% decrease is striking. The remaining supply is distributed among small and medium-sized investors.
The data shows that investors holding ADA coins under $100 make up 0.128 percent of the total supply, while those holding ADA coins between $100 and $100,000 make up 16.8 percent of the total supply.
While ADA/USD is currently hovering around $1.19, with a 30 percent increase in value from the bottom of the year, it is currently the 7th largest cryptocurrency with a capital value of $41 billion. Cardano's token, ADA, has lagged behind this smart contract platform with the surge in demand for the Solana network last week.
Market commentators point out that ADA's price trend is on the rise while the ratio of large investors in its total supply is decreasing, which is a healthy course. Thus, it is thought that the ADA price will be less prone to excessive volatility, while reducing the possibility of price manipulation.
Although the assets of ADA whales have decreased recently, it has been observed that the trading volume of the crypto asset remains high. Data previously showed that 99% of ADA's trading volumes consisted of transactions over $100,000. This is interpreted as institutional investors likely having an indirect investment in the crypto asset. This increased interest can also be attributed to a new fund launched by digital asset manager Grayscale, of which ADA accounts for around 25%. However, the rise in institutional interest in ADA has caught the attention of the Chicago Mercantile Exchange (CME), which is considering increasing crypto-asset futures.