Cardano ($ADA) Whales Reenter Accumulation Period After 7-Month Sell-off

Cardano ($ADA) whales started accumulating the cryptocurrency once again five weeks ago after selling off their holdings over a 7-month period that saw them dump a total of 1.7 billion ADA tokens on the market.

According to on-chain analytics firm Santiment, over the last five weeks, Cardano whales have added 196 million ADA to their holdings.  Santiment’s data looked at Cardano wallets with between 1 million and 10 million ADA on them.

Whales have notably restarted accumulating the cryptocurrency after its price dipped to a 15-month low. Data from CryptoCompare’s live ADA price feed shows that the price of Ada has been slowly dropping over the last few months after hitting a $3 all-time high in August of last year. The cryptocurrency is currently trading at $0.78, a level it hadn’t seen since early 2021.

Notably, ADA  investors have been seemingly holding onto their funds throughout the bear market. Data from Coinbase’s price pages shows ADA has a typical hold time of 121 days, meaning that ADA users on the platform hold onto their assets for over four months before “selling it or sending it to another account or address.”

According to the cryptocurrency exchange, a long hold time “signals an accumulation trend,” while a short hold time “indicates increased movement of tokens.”

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Recently, a study conducted among the largest cryptocurrency trading platforms in South Korea found Cardano was one of the largest holdings among investors in the country, along with XRP, BTC, and ETH. Investors may be HODLing hoping for a renewed bull run in the near future.

New developments have been coming to the network as its total number of transactions rise. As CryptoGlobe reported, Cardano developer Input Output is working with Wanchain, a blockchain interoperability solution, to allow it to become an Ethereum Virtual Machine (EVM) compatible network on Cardano, bringing added utility to the network.

The move comes shortly after  Input Output proposed increasing the network’s block size by 10% from 80 KB to 88 KB per block as the network load has been holding above the 80% mark in a bid to “increase throughput and DApp performance.”

DISCLAIMER
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

IMAGE CREDIT
Featured image via Pixabay

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