Cardano Whales Accumulate 1.89B ADA As Price Soars Over 6%

Crypto investors show confidence in Cardano following the widespread accumulation of its native asset, ADA, over the past month.

The widespread accumulation of ADA was reflected in a recent X post by leading blockchain analytics firm IntoTheBlock (ITB). Data suggested that investors exhibited massive confidence in Cardano by accumulating a massive 1.89 billion ADA last month.

$ADA got a strong vote of confidence last month. Big holders accumulated 1.89 billion ADA last month, translating to over $600 million at current prices.

The majority of the accumulation took place between $0.249 and $0.271.
🔗https://t.co/FCp16WINDG pic.twitter.com/cIRpSDC1fR

— IntoTheBlock (@intotheblock) November 7, 2023

The blockchain analytics firm pointed out that most of these investors accumulated the assets when ADA was changing hands between $0.249 and $0.271.

At the current exchange rate of $0.375, the 1.89 billion ADA coins are valued at $708,750,000 ($708.75 million). Notably, the recent accumulation was made by “big holders.” According to IntoTheBlock’s description, big holders are addresses holding at least 0.1% of a crypto’s circulating supply.

Whale Activity Gains Momentum

Cardano whales have been relatively active in recent times. The Crypto Basic reported last month that “whales and sharks” – addresses holding between 100K and 100M ADA – accumulated 43.71M ADA in two weeks.

Following the acquisition, their combined balance represented 33.43% of ADA’s supply. In addition, old wallets were also observed shuffling massive amounts of dormant ADA coins.

Reasons Behind ADA Rally

The massive spike in whale activity has contributed immensely to the recent uptick in the price of ADA. Like most crypto assets, the bear market wreaked havoc on ADA, as its price plummeted below $0.25 on October 19. Interestingly, the asset’s price rebounded, surging above $0.37.

At press time, ADA is changing hands at $0.378, up 6.5% over the past 24 hours. The ninth-largest crypto by market cap is currently on the verge of hitting the $0.4 mark.

While whales have contributed immensely to ADA’s recent rally, other factors have also played significant roles in the asset’s current performance.

Notably, the development team behind Cardano has taken advantage of the bear market to build behind the scenes. These development efforts did not go unnoticed, as Cardano ended up as last month’s top blockchain project with most Github commits.

Furthermore, the tremendous growth of Cardano’s DeFi ecosystem is another reason for ADA’s massive surge. With a total value locked of $240M, Cardano surpassed Bitcoin to become the 11th largest network by TVL.

It is worth mentioning that Cardano managed to achieve the feat despite having fewer users than Bitcoin. At the time of writing, Cardano’s TVL has surged to $251 million, according to data from DefiLlama.

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