Whales are accumulating more ADA, according to blockchain analytics firm IntoTheBlock
Data from blockchain analytics firm IntoTheBlock reveals a significant accumulation of Cardano’s native ADA token among large holders.
With recent spikes in net flows of more than 1,500% in the past 30 days, the finding suggests ADA whales are actively bolstering their holdings.
Moreover, the most engaged group of users on the Cardano network is involved in trades ranging from $10 to $100. During a recent three-month high, this demographic accounted for 28% of the total transactions.
Despite ADA’s price volatility in recent months, most users appear resilient. According to IntoTheBlock, 22.2% of ADA addresses are profitable, 4.5% are breaking even and a staggering 73.2% are experiencing losses.
However, the majority of these users are holding onto their ADA tokens in anticipation of a price increase, signifying strong faith in the future of the cryptocurrency.
Interestingly, ADA’s price trend exhibits a strong correlation with the two largest cryptocurrencies, Bitcoin and Ethereum, moving in tandem with these digital assets. This correlation is typical among most assets in the volatile cryptocurrency industry, where the movements of Bitcoin and Ethereum often dictate market sentiment.
Finally, the on-chain analytics show a stable transaction count, an increase in transaction volume and a rising number of active wallets on the Cardano network, along with accumulation by whales.