Cardano (ADA) Seeing Uptick in Whale Activity

According to a report by analytics firm Santiment, Cardano (ADA) is experiencing a significant increase in whale activity. 

After experiencing an 82% price drop in 2022, Cardano's fortunes appeared to have taken a turn for the better in 2023, with the asset seeing a rise of 45%. But with many investors remaining cautious, the surge in whale activity could offer a promising sign for the future of the asset.

The report revealed that there has been an enormous uptick in the number of $100,000+ transactions per day on the Cardano network since the start of February, with an average of approximately 1,700 such transactions now taking place every day. This is a significant increase from the approximately 300 $100,000+ transactions that were occurring on the network in January.

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However, there are also negative metrics to consider. The average amount of time coins sit in an address on the Cardano network has ballooned from 267 to 407 days, indicating that circulation is struggling. Additionally, daily active addresses have dropped from 85,000 in November to around 62,000 per day.

Despite these concerns, the report noted that the fact that average trader returns are negative and sentiment toward ADA is slightly negative suggests that there may be potential for a price burst. If sentiment toward the asset changes, it could lead to a significant price increase for Cardano.

Overall, the surge in whale activity is a promising sign for Cardano's future, but continued monitoring is necessary to ensure that the asset can flourish. As the crypto market remains volatile, it is important to consider both positive and negative indicators when evaluating the potential of any asset.