Cardano (ADA) may not be among the top three cryptocurrencies by market capitalization, but the proof-of-stake (PoS) Layer-1 blockchain is causing a stir in terms of whale transaction volume right now. IntoTheBlock (ITB), a cryptocurrency analytics tool, reports that Cardano’s whale transactions have increased 11.55% to a volume of $9.55 billion.
To put things in perspective, this volume is up 69.64% to $33.64 billion, making it the second greatest volume among the top 10 listed currencies, after Bitcoin (BTC). The second-largest cryptocurrency by market capitalization, Ethereum (ETH), has only witnessed $3.3 billion in whale volume despite seeing a staggering 50% increase. In comparison to Cardano, stablecoins, which are recognised to need a high transaction volume, also traded at a lower whale value.
This is a noteworthy achievement for Cardano since it shows that market whales have faith in the system. Cardano Whales may have gone all out in their various acquisitions of ADA valued more than $100,000 and beyond for a number of reasons. A highly decentralised system, Cardano introduces active governance votes on a regular basis.
These whale buys may be directed towards these governance initiatives; on-chain staking is another option that has been mentioned.
Potential implications for Cardano (ADA) price
Since the beginning of the year, Cardano (ADA) has proven its resilience and capacity to continue being a useful blockchain network. In terms of overall GitHub commits and other important performance indicators, Cardano has surpassed its competitors with the release of several products, updates, and inventions.
But for now, Cardano’s price isn’t keeping up with its enormously optimistic rise in whale volume. The present price of the coin is $0.3745, a decrease of 4.74% over the previous day. It will take time to see whether the price will change despite ADA’s strong effort, as seen by its whale move.
