Cardano (ADA) whales and sharks have amassed a stunning $116.1 million since May 2023, which is considered an unexpected development in the cryptocurrency market. The current price of $0.29 for Cardano has spurred interest and led to large holders’ accumulation.
According to the accumulation and ADA holders’ activity data obtained from the on-chain analytics company Santiment, holders have increased their holdings by an additional $116.1 million after May 21, 2023. The company has explained this activity, demonstrating its faith in the project’s growing ability. The data from Santiment show an intriguing concentration of power regarding ownership distribution.
The data also revealed that just three whales currently control 3.23 billion ADA, or 9.39% of the Cardano supply. Chandan Gupta, a freelance cryptocurrency analyst, in his article on Todayq News, explained that “the revelation by Santiment and recent consolidation shows how much power a small group of people may have in the cryptocurrency market.”
Further analysis of Santiments data reveals which ADA holders have been particularly active in accumulating assets. Since September 2023, holders with balances between 100,000 and 10 million ADA have been the largest accumulators. Gupta also believes that the situation shows that relatively large retail investors are also finding Cardano to be an appealing asset, in addition to large whales.
Meanwhile, as of press time, retail investors continue to own the bulk of Cardano holdings, who jointly control over 23.46 billion ADA or about 68.26% of the total supply. In a cumulative analysis, as gathered from relevant social media handles, industry experts believed that given the varied ownership of Cardano, this broad distribution might help maintain its stability and resilience.
3.82 Million Addresses Hold ADA At A Loss, Data Reveals
The study by Santiment also reveals the difficulties that a sizeable majority of ADA holders encounter. Approximately 3.82 million addresses, representing 86.05% are holding ADA at a loss. This development raised concerns regarding when they entered the market and the possible tactics they would use to deal with this scenario.
However, it was also revealed that about 50,610 addresses, representing 1.14% of all ADA holders, are breaking even. This suggests that they joined the market at an advantageous time and may have been relatively secure despite continued market volatility.
While speaking on this trend, another analysis on Cointelegraph explained that the Whales collection of ADA demonstrates their confidence in the project’s long-term viability and expansion potential. It also added that the dominance of a small number of holders and the pervasive imbalance in ownership raises questions regarding decentralization and its effects.
Yet another report by Messari shows that positive growth is expected in ADA in the Q2 of 2023. It also adds that investors should expect a 48% increase in its daily transactions compared to what they had last quarter. Messari’s report also underscores the rising currently experienced on the Cardano blockchain during the second quarter of 2023.
Also, Cardano has ranked #21, from its previous #34, in terms of Total Value Locked (TVL). Cardano’s TVL has also risen by 9.7% in the last quarter, with a total increase of 198.6% during the year. Messari also revealed that almost 274,940 addresses acquired ADA at price of between $0.255- $0.264. and an extra 108,240 addresses also purchased ADA between the price range of $0.311- $0.320.
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