Cardano has reached a major milestone with the impending Chang hard fork. This crucial moment follows the recent upgrade of his node validation software before the upgrade goes live. As the Cardano ecosystem gears up for this major update, the network is experiencing a flurry of activity that could determine its trajectory in the coming weeks.
Amid this increased activity, Cardano’s cryptocurrency, ADA, has a interesting price development. ADA has seen positive price action over the past 24 hours, reflecting growing market optimism. This price increase follows increasing transaction volumes, especially from whales or large ADA holders. According to recent on-chain data, this cohort of traders has significantly increased their transactions, with transaction volume recently peaking at 17 billion ADA tokens.
Whales make movements
This movement of large holders was noted on IntoTheBlock’s dashboard via a metric that tracks the number and volume of transactions over $100,000 in a 24-hour period. Interestingly enough, this statistic shows that the The number of large transactions has decreased since the beginning of the week. However, a spike in activity on Friday saw a trading volume of 17.78 billion ADA, representing $7 billion worth of tokens exchanged between whale addresses.
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The increase in activity continues, with 15.43 billion ADA tokens worth $6.28 billion moved among large holders in the last 24 hours.
While the surge in activity and trading volume could also be big moves to crypto exchanges for potential sell-offs, on-chain data suggests otherwise. Insights from the influx of major holders of IntoTheBlock metric reveal that ADA whales quickly collected tokens instead. This metric specifically tracks the inflow of ADA tokens into wallets holding at least 0.1% of the circulating supply, providing a clear picture of the behavior of large holders.
The data shows that these portfolios have experienced a 579% increase in inflows over the last seven days and a 173% increase over the last 30 days. This significant accumulation has led to a corresponding increase in net flow, which explains both the inflows and outflows of tokens from large addresses. Specifically, there has been a staggering 720.62% increase in net flows over the past seven days, and an even more dramatic 2580% increase over the past 30 days.
Cardano recovery imminent?
These numbers suggest that large holders are not only acquiring more ADA but also retaining their holdings, resulting in a substantial net positive flow. This trend reflects a strong accumulation phase among ADA whales, indicating their growing trust and long-term commitment to the Cardano network.
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Much of this accumulation can be attributed to the coming Cardano hard fork, which will usher in the Voltaire era. Voltaire is the final phase of Cardano’s original roadmap for creating a fully decentralized blockchain ecosystem. As the Chang hard fork approaches, the crypto community is closely monitoring these developments and anticipating how they will impact the overall landscape of the Cardano network and market performance.
Moreover, there are rumors that Cardano could be the next cryptocurrency to secure its own Spot ETFs according to the recent approval of Discover Ethereum ETFs. At the time of writing, Cardano is trading at $0.4171, up 1% in the last 24 hours. The next feasible step is to break above $0.42.
Featured image created with Dall.E, chart from Tradingview.com
