Cardano is at a significant milestone with the impending Chang hard fork. This pivotal moment follows the recent update of your node validation software before the upgrade goes live. As the Cardano ecosystem prepares for this major upgrade, the network is experiencing a surge in activity that could determine its trajectory in the coming weeks.
Amid this heightened activity, Cardano’s cryptocurrency, ADA, has demonstrated a interesting price performance. ADA has seen positive price action over the past 24 hours, reflecting growing market optimism. This price surge comes on the back of increased trading volumes, especially from whales or large ADA holders. According to recent on-chain data, this group of traders has significantly increased their transactions, with trading volume recently peaking at 17 billion ADA tokens.
Whales making movements
This movement by large holders was observed on the IntoTheBlock dashboard through a metric that tracks the number and volume of transactions over $100,000 in a 24-hour period. Interestingly, this metric shows that the The number of large transactions has slowed since the beginning of the week. However, a spike in activity created a trading volume of 17.78 billion ADA on Friday, bringing the tokens to $7 billion exchanged between whale addresses.
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The surge in activity remains persistent, with 15.43 billion ADA tokens worth $6.28 billion moved between large holders in the past 24 hours.
While the increase in activity and trading volume could also result in large transfers to cryptocurrency exchanges for potential sales, on-chain data suggests otherwise. Large Holder Flow Insights from IntoTheBlock metric reveal that ADA whales have been accumulating tokens at a rapid pace. This metric specifically tracks the inflow of ADA tokens into wallets that hold at least 0.1% of the circulating supply, providing a clear picture of the behavior of large holders.
The data shows that these wallets have seen a 579% increase in inflows over the past seven days and a 173% increase over the past 30 days. This significant accumulation has led to a corresponding increase in net flow, which accounts for both the inflow and outflow of tokens from large addresses. Specifically, there has been a staggering 720.62% increase in net flow over the past seven days and an even more dramatic 2,580% increase over the past 30 days.
Cardano recovery imminent?
These figures suggest that large holders are not only acquiring more ADA but also retaining their holdings, resulting in substantial net positive inflow. This trend reflects a strong accumulation phase among ADA whales, indicating their growing confidence and long-term commitment to the Cardano network.
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Much of this buildup can be attributed to the upcoming Cardano hard fork, which will herald the Voltaire era. Voltaire is the final phase of Cardano’s original roadmap to create a fully decentralized blockchain ecosystem. As the Chang hard fork approaches, the crypto community is closely monitoring these developments, anticipating how they will influence the overall landscape of the Cardano network and its performance in the market.
Furthermore, there are rumors that Cardano could be the next cryptocurrency to secure your own spot ETFs following the recent approval of Spot Ethereum ETFs. At the time of writing, Cardano is trading at $0.4171, up 1% in the last 24 hours. The next viable step is to break above $0.42.
Featured image created with Dall.E, chart from Tradingview.com