• Cardano whales, holding between 100 million and 1 billion ADA, have increased their holdings by 11% over the past month, indicating strong confidence among large investors and potential upcoming price reversals.
  • Despite this accumulation, user activity on the Cardano network has declined, raising concerns about its current adoption rates.

ADA Whales Add More Tokens

Amid a generally tepid performance in the cryptocurrency market, Cardano has seen notable activity among its wealthiest investors. Cardano whales—those holding between 100 million and 1 billion ADA—have increased their holdings by 11% in the past month, according to the latest findings from IntoTheBlock (ITB).

This recent accumulation underscores a growing confidence or strategic positioning among these large ADA holders. Currently, this influential cohort commands 6.71% of the entire token supply, reflecting their substantial impact within the Cardano ecosystem. Historically, increases in whale activity often signal potential market shifts, suggesting a possible upcoming price reversal for ADA.

Despite these significant movements, ADA’s price has largely mirrored the broader market trends, with a modest recovery observed recently. ADA surged nearly 6% in the past 24 hours, reaching $0.456 at the time of writing. This upward movement aligns with the overall market recovery, hinting at a positive outlook for Cardano.

Experts are bullish about ADA’s future, with some predictions suggesting it could mirror its 2021 surge, potentially targeting levels as high as $7.80. Short-term forecasts also predict ADA could reach $1.70 and might even ascend to a “parabolic” peak of $10, showcasing strong confidence in its growth prospects.

Further excitement surrounds speculation about Gemini, a major US-based cryptocurrency exchange, potentially listing ADA. Such a listing could trigger a significant price rally for the token, amplifying its visibility and appeal to new investors.

Decline in User Activity Raises Questions

Despite the optimistic price projections, Cardano’s user activity has shown a noticeable decline since March. Data from Artemis indicates that daily transactions on the Cardano network have dropped significantly, currently hovering around 50.7k compared to nearly 96k recorded two months ago. This decrease in user engagement is a concerning trend, suggesting potential challenges in the network’s current usage and adoption rates.

Additionally, daily active addresses have followed a similar downward trend, briefly dipping below 24k this month. This decline in active users raises questions about the underlying factors influencing these trends, despite the positive sentiment surrounding Cardano’s price potential.

While Cardano whales are significantly boosting their holdings and projecting confidence in ADA’s future, the decline in user activity presents a contrasting narrative that cannot be overlooked. As the market dynamics unfold, it remains to be seen how these factors will influence ADA’s trajectory in the coming months.