Cardano is currently in a critical phase with the impending Chang hard fork, marking a significant milestone for the network. The recent upgrade of its node validation software has set the stage for this major update, which is expected to have a significant impact on the Cardano ecosystem. As the network prepares for this transition, there has been a notable surge in activity that could potentially shape its trajectory in the coming weeks.
One of the most interesting developments surrounding Cardano’s ADA cryptocurrency is its positive price action in the past 24 hours. This increase in value is reflective of the growing market optimism surrounding the network. Notably, large ADA holders, often referred to as whales, have been actively engaging in transactions, contributing to the rise in transaction volumes. Recent on-chain data indicates that there has been a peak of 17 billion ADA tokens being moved, with a significant portion of these transactions coming from whale addresses.
While there has been a decline in the number of large transactions at the beginning of the week, a sudden spike in activity resulted in a substantial trading volume of 17.78 billion ADA on Friday alone. This surge in activity has continued, with 15.43 billion ADA tokens worth $6.28 billion being moved among large holders in the past 24 hours. Despite the possibility of these transfers being aimed at exchanges for potential selloffs, on-chain data suggests that ADA whales have been accumulating tokens at a rapid pace.
Accumulation by Whales
Data from IntoTheBlock’s Large Holders Inflow metric reveals that ADA whales have been actively accumulating tokens. This metric tracks the influx of ADA tokens into wallets holding at least 0.1% of the circulating supply, providing insights into the behavior of large holders. Over the past seven days, there has been a 579% increase in inflows, indicating significant accumulation by whales. Moreover, the net flow, which considers both inflow and outflow, has seen a staggering 720.62% increase in the last week and a substantial 2580% increase over the past month.
The accumulation of ADA tokens by large holders can be attributed to the upcoming Cardano hard fork, which will mark the beginning of the Voltaire era. This phase is crucial in establishing a fully decentralized blockchain ecosystem for Cardano. As the Chang hard fork draws near, the crypto community is closely monitoring these developments and speculating on their potential impact on the overall landscape of the Cardano network and its market performance. Additionally, there are rumors circulating about Cardano potentially being the next cryptocurrency to secure its own Spot ETFs following the recent approval of Spot Ethereum ETFs. At the time of writing, Cardano is trading at $0.4171, reflecting a 1% increase in the past 24 hours.
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