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Cardano has been up by 59% since the beginning of the year, with the number of wallets holding large amounts of ADA tokens increasing significantly. On-chain data from Santiment shows that the number of addresses containing between one million to one hundred million ADA tokens has risen by 36.
🐳 #Cardano whale numbers have risen in 2023, and large transactions have notably broken out. The last time there were this many $100k+ $ADA transactions was in May, & its price jumped +36% from the beginning of that week until its local top in early June. https://t.co/GTuBl9DKWA pic.twitter.com/9GSnMqlomB
— Santiment (@santimentfeed) February 7, 2023
The latest influx of large token holders is the highest whale activity that the Cardano network has seen since the middle of May 2022, covering nine months. The impact of this development is a 59% rise in the price of ADA since the beginning of January 2023.
Responding to Santiment’s report, a Cardano Advisor explained that the increasing number of whales joining the Cardano network and the large transactions indicated are positive signs of ADA price development. He noted that the influx of whales into the market would increase the demand for ADA coins. The outcome of this increased demand would be a price rally.
The advisor further explained that the large ADA transactions indicate growing confidence in the future of the coin on the side of investors. According to him, this confidence will likely spread to other investors joining the network, leading to further upward price movement for ADA.
Cardano kicked off the year at $0.2456, dropping from an all-time high (ATH) of $3.0994 at the peak of the last bull run in August 2021. That drop reflects a 92.61% loss, one of the worst for any coin in the recent bear market.
The influx of whales, as indicated by Santiment, could be the force that will trigger a sustained rally for the acclaimed Ethereum killer. Like most other coins in the crypto market, Cardano has started the year with bullish sentiment, overcoming local resistance in the process. Cardano would undoubtedly see more actions as the crypto market navigates the coming weeks and months.
Santiment is a cryptocurrency analysis platform that gauges the behavioral patterns of users. It monitors adjustments by participants in the cryptocurrency industry, indicating significant changes that could impact the prices of particular cryptocurrencies or the market in general.