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On-Chain Data Shows that ADA Rally is Driven by Smaller Investors
- Whale activity on the Cardano network dropped by 25% in March 2023.
- Dropping whale activity suggests a profit-taking exercise by large ADA holders.
- Smaller investors are showing more interest in Cardano, suggesting expanded network activity.
Data from IntoTheBlock, the AI platform that provides actionable intelligence for crypto assets, shows a drop in whale activities on the Cardano network in the past 30 days. According to the platform, the number of whales holding between 100 million to 1 billion ADA tokens decreased by 25% in March 2023.
The crypto data aggregation platform also reveals a significant drop in whales holding between 10 million and 100 million ADA tokens. It suggests that Cardano whales are on a profit-taking exercise, considering that ADA has posted some significant gains recently. It also indicates that smaller volume holders supported the current ADA rally by entering the market in large numbers.
ADA’s opening price in March 2023 was $0.3515, based on data from TradingView. The price dropped to a local low of $0.2977 before picking up again. As of the time of writing, the ADA traded at $0.3844, reflecting an overall profit of 9.13% for March.
Source: Daily Chart on TradingView
Smaller investors showing more interest in Cardano suggest an expanded network activity that leads to increased decentralization. It also reflects the attribute of a network growing in stability, even as Cardano retains its leadership role as a top smart contract network.
Overall, Cardano’s 2023 price action has been impressive. It gained 57.84% from a starting price of $0.2456 on January 1, 2023. According to analysts, a price rally motivated by smaller investors reflects healthy and more sustainable growth for the blockchain network. It puts it in the position where the action of a few whales will no longer determine the future of the network.
On the lower cadre, Santiment, the behavior analytics platform for cryptocurrencies shows an increase in the smaller ADA whales. It reveals that ADA addresses with 10,000 or more tokens have accumulated more than 1.03 billion ADA tokens, totaling 3.3% of the total ADA coins currently in circulation.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
The post On-Chain Data Shows that ADA Rally is Driven by Smaller Investors appeared first on Coin Edition.
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