Cardano (ADA) Records Gigantic Whale Volume, Incoming Price Reversal?
Cardano (ADA) might not be ranked among the top three cryptocurrencies by market cap; however, when it comes to the current whale transaction volume count, the proof-of-stake (PoS) Layer-1 blockchain is making waves. According to data from crypto analytics platform IntoTheBlock (ITB), Cardano’s whale transactions have jumped 11.55% with a volume of $9.55 billion.
For context, this volume is the second largest among the top 10 listed coins after Bitcoin (BTC) with a volume of $33.64 billion, up 69.64%. Ethereum (ETH), the second largest by market cap, has only seen $3.3 billion in whale volume, despite recording a massive upshot of 50%. Stablecoins, known to command a large transactional inflow, also traded a lower amount of whale value compared to Cardano.
This highlight for Cardano is impressive as it underscores the vote of confidence from market whales in the protocol. Several permutations might explain why Cardano whales went all out in their respective acquisition of ADA worth more than $100,000 and above. Cardano is a highly decentralized protocol with active governance votes being introduced regularly.
These whale acquisitions might be targeted toward these governance engagements, and another highlighted possibility is on-chain staking.
Potential implications for Cardano (ADA) price
Cardano (ADA) has, since the start of the year, demonstrated its grit and capability to stay relevant as a functional blockchain network. With the launch of a number of products, upgrades and innovations, Cardano has outshined its peers in total GitHub commits and other key performance markers.
However, the massive bullish ride in Cardano’s whale volume is not translating to its price at the moment. The coin is trading at a spot price of $0.3745, down 4.74% in the past 24 hours. With ADA showing an intense push, per its whale action, time will tell whether or not there will be an effect on the price.