Certain Cardano Investors Doubled Their ADA Holdings During the Crash

Cardano

The most recent price drops in the cryptocurrency market have not deterred large investors from hoarding more shares of certain assets. This became evident for the native Cardano token, as on-chain data revealed that some ADA wallets more than doubled their holdings in less than two weeks.

ADA Appetite Increases With Lower Prices

It’s safe to say that the cryptocurrency space went through a steep correction since the middle of January, wiping more than $500 billion from its cumulative market cap in a week at one point. Cardano, which spiked to a six-week high on January 18th at $1.65, was among the most harmed assets.

ADA is down 45% in four days from the aforementioned local peak at $0.92 on January 22. Since then, the token has recovered some of its lost ground and is trading above $1, but it is still down around 25% year-to-date.

Nevertheless, this slump hasn’t dampened investors’ appetite for the asset. Just the opposite, as revealed by data from Santiment. The analytics resource reported that addresses holding between 10,000 and 1,000,000 tokens increased their bags by nearly $55 million worth of ADA in less than two weeks.

As a percentage, that means their holdings grew by more than 110% in 11 days.

It’s worth noting that IntoTheBlock data showed something similar for BTC as well. As reported yesterday, whales and long-term holders have continued accumulating during the price crash, in which bitcoin dropped by $10,000 in days.

Cardano network issues

While the appetite for the native token seems to be strong, the network behind it has encountered some issues lately.

Reports started to emerge last week that numerous transactions failed due to congestion on the blockchain following the launch of the first Cardano-based dApp – SundaeSwap.

With other apps starting to run on the blockchain, the congestion only increased in the following days. In fact, the blockchain load on Cardano started to increase in mid-January and peaked on the 21st at 94.1%. It has remained above 90% for nearly two weeks now.

Cardano increased its block size by 12.5% two months ago, but this doesn’t seem to have the necessary effect. As such, the team aims to introduce a layer 2 scaling solution during the next Hydra update later on this year.

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