Whales appear to be bargain-hunting Cardano (ADA) as the programmable blockchain’s DeFi protocols see rapid growth
Large investors, known as whales, appear to be hunting for Cardano (ADA) bargain as the programmable blockchain’s DeFi protocols overgrow.
Whale holdings in Cardano (ADA) hit a record high
Balances held by addresses with between 1 million and 10 million ADA rose to a record 12 billion ADA ($9.72 billion) last week, up 41% since late January.
The Total Value Locked in the Cardano network increased by $50 million in a week, reaching a lifetime high of $160.79 million. More than 70% of the funds are locked in the SundaeSwap DEX.
“Cardano appears to be showing signs of promise for more to come after years without launching smart contracts. This appears to be translating into an accumulation of ADA from large players,” Lucas Outumuro, head of research at IntoTheBlock, said in a weekly report published on Friday.
“After years of lacking smart contract capabilities, Cardano is starting to show some traction in its application layer,” Outmuro noted. “DEXs on Cardano has raised capital from reputable crypto funds such as Three Arrows Capital.”
Last week, Cardano-based DEX AdaSwap announced a $2.6 million funding round led by venture capital firm iAngels and several other investors, including the actor and producer. Gal Gadot and her husband, Jaron Varsano.
Whale holdings have increased by more than 40% this year. “Following a 70% correction, these addresses have now been accumulating aggressively. This group, as well as those holding over 100M ADA, recorded double-digit growth month over month,” Outumuro said.
The return of significant investor interest could signify favorable times to come, assuming the broader market finds a foothold. The sale of whales in early September turned out to foreshadow slippage. “These [whale] addresses had previously sold a large number of their holdings right before ADA began to crash,” Outmuro noted.
ADA’s whale holdings | Source: IntoTheBlock
ADA peaked above $3 on September 2 and has lost more than 70% since then. The ninth-largest cryptocurrency by market value last traded near $0.8080, down 5% on a 24-hour basis.
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