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Cardano (ADA) Sees Significant Rise in Transaction Volume, Signaling Return of Whales

Sat, 02/19/2022 - 14:26
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Tomiwabold Olajide
Increases in volume of large transactions might suggest rising buying or selling activity
Cardano (ADA) Sees Significant Rise in Transaction Volume, Signaling Return of Whales
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A prominent crypto analyst reports that the volume of large ADA transactions has risen to exceed $21.6 billion. He points out that such market action frequently serves as a proxy for institutional and whale activity on the Cardano network, indicating how big players may be preparing for price volatility.

Large transactions, often greater than $100,000, serve as a proxy for the number of transactions made by whales and institutional investors. The overall amount that whales and institutional players transact in a given day is determined by the volume of these large transactions.

Increases in the volume of large transactions might suggest increasing buying or selling activity among large players. Whales and rich investors have been known to accumulate more during periods of collapse, opting for dip-buying.

Cardano among top assets whales are hodling

According to WhaleStats, the top 1,000 BNB wallets it tracks hold a substantial amount of ADA tokens. It reports that these top whales hold nearly $11,815,034 worth of ADA tokens.

Cardano recorded a huge increase in on-chain activity, as U.Today reported, with new addresses rising by 167%. IOHK, Cardano's parent company, discussed earlier in the year the potential of onboarding new users following the launch of new dApps.

IOHK said, ''Now, as we enter the Basho stage, we're investing further energy into optimization and scaling. Building on these foundations, and steadily increasing capacity and throughput to deal with the growth in the DApp ecosystem and onboard first hundreds of thousands, then millions of new users."

Presently, 492 projects are building on Cardano, as per the latest updates from Tim Harrison, IOHK's director of communications. ADA trades at $1 at the time of publication.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.