The cryptocurrency market is advancing, and the optimism from January has led whales to start accumulating altcoins instead of dumping them on the market. Recently, Cardano (ADA) and Polygon (MATIC) have emerged as some of the most accumulated assets by large investors.
Last week, WhaleStats reported that ADA is the most traded token among the top 100 BSC whales. Additionally, the Ethereum competitor smart contract platform is also standing out in usage among the top 1,000 investors on the Binance network.
As for Layer 2, in addition to seeing its token undergo significant accumulation, it has become one of the top assets held by the top 500 Ethereum investors and has undergone a period of major whale transactions. According to the Whale Alert Twitter profile, one whale alone moved around $50 million in MATIC.
But with the recent crypto market correction, what could be driving whales' interest in these altcoins? That is what we will explore today.
The Ethereum competitor can be proud of the launch of the DJED stablecoin, at least at the time of writing this article. This was one of the most anticipated events for the ADA community and finally came to fruition.
Immediately after its launch, DJED had no trouble filling its guarantee coffers. For example, the stablecoin was able to attract over 29 million ADA tokens and achieved a collateral rate of 643% out of 800%.
The success of this stablecoin may have influenced the purchases of large investors, given that a stable asset is critical for the growth of a project in decentralized finance (DeFi). And DJED may already be influencing Cardano's total value locked (TVL), as since its launch, the altcoin's TVL has grown by 39%.
Other developments may also justify whales' attention, such as the arrival of Liqwid's mainnet, a decentralized platform that offers liquidity solutions for interest rate curves.
As a liquidity protocol without the need for intermediaries, users can participate on the platform as lenders, liquidity providers or perpetual loan borrowers with collateral.
In addition, Cardano is expected to undergo an update that will bring new features integrated into the Plutus smart contract programming language. The most significant will be the introduction of native support for Schnorr signatures and the Secp256k1 curve (used in Bitcoin and Wanchain), something that could make the ADA blockchain more interoperable with networks that use these signatures.
Meanwhile, Polygon has been standing out for its major partnerships, such as a recent one with Doritos to create the non-fungible tokens (NFTs) for Doritos Triangle Studios, a virtual concert venue. The Layer-2 platform also underwent a hard fork in January that improved the performance of its network, making the gas fee system more refined.
As transaction fees are always a point of relevance when an investor chooses a network, the improvement may bring more users to Polygon, and whales may just be anticipating this move.
The MATIC network is also preparing for the arrival of zkEVM, the first open-source zk-Rollup that offers users a smooth, hassle-free experience without compromising security. The zkEVM will have full compatibility with the Ethereum Virtual Machine (EVM), allowing users to experience the industry-leading smart contract platform with ease.
In conclusion, the recent accumulation of Cardano (ADA) and Polygon (MATIC) by large investors highlights the growing interest in these altcoins. As the crypto market continues to evolve, it will be interesting to see how these altcoins will fare in the long term.