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Cardano Mid-Term Holders Continue to Exert Buying Pressure on ADA Price, Here's How

Mon, 02/07/2022 - 13:41
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Tomiwabold Olajide
Cardano mid-term holders keep wielding buying pressure on ADA price
Cardano Mid-Term Holders Continue to Exert Buying Pressure on ADA Price, Here's How
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Data from IntoTheBlock analytics suggests that Cardano mid-term holders who may have been accumulating at recent prices might be responsible for ADA's buying pressure.

Cardano (ADA) On-Chain Signals, Courtesy: IntoTheBlock

According to the IntoTheBlock's holders' composition by time held, just 7% of ADA holders have held onto their tokens for more than a year, 71% have held for a year, while 22% have held onto their tokens for barely less than a month. The greater chunk of ADA holders being short and medium-term holders might suggest that ADA may have been seeing buying pressure from this class.

The Cardano (ADA) price is extending its rebound from lows of $1.17 reached on Feb. 3. At the time of publication, ADA was trading at $1.19, up 5.61% in the last 24 hours per CoinMarketCap data.

Cardano's journey to scalability

Cardano remains in the foothills of the Basho phase. In a recent blog post, IOHK noted finality and concurrency as important metrics to consider when discussing scalability. It notes that TPS is probably the least meaningful metric to consider as a means of comparison as scalability is not defined in terms of a million TPS.

Kraken's recent report notes a surge in network activity and a massive uptick in adoption since late 2020. It notes that ''Cardano saw a massive uptick in adoption starting late 2020 and throughout the course of 2021. Cardano underwent exponential growth in nearly every adoption metric listed, both on-chain and off-chain. There are now nearly 3 million wallets (1348% annual growth) on the network and over I million delegated wallets (870% annual growth)."

Since the beginning of 2022, the number of Cardano wallets has increased by roughly 13.08%, growing from 2,666,372 on Jan. 1 to 3,015,400 on Feb. 7, a total increase of 349,028.

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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.