- Cardano (ADA) has achieved a significant milestone with long-term holders reaching an all-time high, now holding nearly 40% of the total supply.
- This surge in long-term investment reflects strong confidence in the project’s future, despite ADA’s price remaining stable.
Cardano, currently ranked as the 10th largest cryptocurrency by market capitalization, has reached a significant milestone—one that has nothing to do with its price. Despite ADA’s market value being relatively stable, the percentage of tokens held by long-term investors is at an all-time high, signaling strong confidence in the project’s future.
A Growing Community of Hodlers
Recent data from IntoTheBlock highlights that approximately 72% of ADA holders are classified as “hodlers,” meaning they have held their ADA for over a year. These hodlers now account for nearly 40% of the total supply, marking a record for the network. In addition to these long-term investors, 25% of ADA holders are considered “cruisers,” holding their tokens for one to twelve months. Meanwhile, only 3% are “traders” who have held ADA for less than a month, indicating minimal short-term speculative activity.
The classification of holders reveals the sentiment within the Cardano community. Hodlers represent long-term believers in the project, cruisers act as mid-term swing traders, and traders are short-term speculators. The high percentage of hodlers is a positive indicator for the ecosystem, suggesting a robust commitment to the project’s growth and long-term vision.
What’s Fueling the Long-Term Optimism?
One of the key drivers behind the increase in long-term holders is the expanding range of use cases on the Cardano blockchain. As more decentralized applications and governance features emerge, long-term investors may prefer to retain their holdings to benefit from future opportunities. The upcoming Chang #1 hard fork is a highly anticipated update that will introduce governance capabilities to the network, further enhancing Cardano’s appeal.
According to an August 12 update from Intersect, progress on the hard fork is moving smoothly, with 67% of stake pool operators (SPOs) having upgraded to version 9.1.0. The upgrade is crucial for the Cardano network, and with many crypto exchanges signaling their readiness, the hard fork could be implemented soon.
Is ADA Undervalued?
Cardano currently settles around $7.2 billion in daily on-chain volume, outperforming several other networks. The network’s NVT (Network Value to Transactions) ratio stands at a low 2.62, suggesting ADA may be undervalued. If this holds true, the substantial number of long-term holders implies that these investors are willing to wait for ADA’s potential to be fully realized.
While ADA’s price hasn’t hit new highs, the growing confidence among long-term investors and the expanding use cases for Cardano hint at a promising future for the network.
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