Cardano is at a major milestone with the upcoming Chang hard fork. This pivotal moment follows the recent upgrade of its node validation software before the upgrade goes live. Because the Cardano ecosystem gears up for this major update, the network is experiencing a surge in activity that might determine its trajectory in the approaching weeks.
Amidst this heightened activity, Cardano’s cryptocurrency, ADA, has demonstrated an interesting price performance. ADA has seen positive price motion up to now 24 hours, reflecting growing market optimism. This uptick in price comes on the heels of accelerating transaction volumes, particularly from whales or large ADA holders. In line with recent on-chain data, this cohort of traders has significantly ramped up their transactions, with transaction volume recently reaching a peak of 17 billion ADA tokens.
Whales Making Moves
This movement from large holders was noted on IntoTheBlock’s dashboard through a metric which follows the number and volume of transactions greater than $100,000 in a 24-hour period. Interestingly, this metric shows that the number of enormous transactions has been on a decline because the starting of the week. Nevertheless, an activity spike created a trading volume of 17.78 billion ADA on Friday, coming to $7 billion price of tokens exchanged amongst whale addresses.
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The rise in activity continues to linger, with 15.43 billion ADA tokens price $6.28 billion moved amongst large holders up to now 24 hours.
While the surge in activity and trading volume is also large transfers to crypto exchanges for potential selloffs, on-chain data suggests otherwise. Insights from IntoTheBlock’s Large Holders Inflow metric reveal that ADA whales have been rapidly accumulating tokens as a substitute. This metric specifically tracks the influx of ADA tokens into wallets that hold a minimum of 0.1% of the circulating supply, providing a transparent picture of enormous holder behavior.
The information shows that these wallets have experienced a 579% increase in inflows over the past seven days and a 173% increase over the past 30 days. This significant accumulation has led to a corresponding rise in net flow, which accounts for each the inflow and outflow of tokens from large addresses. Specifically, there was a staggering 720.62% increase in net flow during the last seven days and an excellent more dramatic 2580% increase over the past 30 days.
Source: IntoTheBlock
Cardano Recovery Imminent?
These figures suggest that giant holders should not only acquiring more ADA but are also retaining their holdings, leading to a considerable net positive flow. This trend reflects a powerful accumulation phase amongst ADA whales, indicating their growing confidence and long-term commitment to the Cardano network.
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Much of this accumulation may be attributed to the upcoming Cardano hard fork, which is able to herald the Voltaire era. Voltaire is the last phase of Cardano’s original roadmap in creating a completely decentralized blockchain ecosystem. Because the Chang hard fork approaches, the crypto community is closely monitoring these developments, anticipating how they are going to influence the general landscape of the Cardano network and its market performance.
Moreover, there are rumors that Cardano may be the subsequent cryptocurrency to secure its own Spot ETFs following the recent approval of Spot Ethereum ETFs. On the time of writing, Cardano is trading at $0.4171, up by 1% up to now 24 hours. The following feasible step is breaking above $0.42.
ADA price moving to $0.42 | Source: ADAUSDT on price chart from Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com