What awaits Cardano? What Does the Data Say?

Perhaps the strongest reason behind the Cardano (ADA) price increase was the strong whale activity in Cardano. According to reports, whale transactions on the Cardano blockchain have increased significantly since the beginning of February. The average whale transaction (worth $100,000 or more) in the first half of February was recorded at around 1700 transactions per day. That’s five times more than the daily average of 300 transactions in January last month.

Similarly, whale and shark-level ADA accumulation has been skyrocketing since the bankruptcy of cryptocurrency exchange FTX. On-chain data provider Santiment made the following note in its statement on the subject:

“Whale and shark-level addresses holding 10,000 to 10 million ADA have accumulated 659.53 million ADA. The ADAs accumulated amount to $235.5 million. This return from Cardano’s key stakeholders is a good sign.”

It also reported that the average investor return on on-chain data provider Cardano has turned negative. Therefore, the risk in investing in ADA is relatively low as selling pressure is likely to be lower in the future.

Santiment’s “Average Dollar Investment Age” metric shows that large investments in Cardano continue to stand as dormant coins without much activity. “Six months ago, the average time coins stayed at an address was 267 days,” the report said. This number increased to 407 days as circulation continued to be difficult.” note dropped.

“Also, the total number of unique daily active addresses on the Cardano network is declining. In November 2022, the total number of daily active addresses was 85,000, and this number has now dropped to 62,000 daily addresses.”