Large holders of Cardano, often referred to as "whales," have made substantial purchases in the recent month, amassing approximately 130 million ADA tokens, equivalent to over $39 million, as reported by crypto analyst Ali on Twitter.
This uptick in acquisition comes amid a volatile phase for the cryptocurrency, with the latest data from CoinGecko showing the price of ADA hovering around $0.29 after a slight 2.8% increase.
Cardano retains a strong market cap of around $10.48 billion, with an impressive 24-hour trading volume reaching $248 million.
The second quarter saw ADA's price and market cap retrace after an exceptional 53.5% surge in the first quarter.
A recent Messari report indicated that even after a 26.9% quarter-on-quarter decline, ADA's year-to-date growth remained positive at 12%. This pullback set ADA slightly behind the general crypto market's QoQ growth of 0.1%.
ADA, Cardano's native asset, primarily serves to settle network fees, register stake pools for network consensus participation and for staking, helping to bolster the network's security and granting token rewards to its participants.
Legal challenges in the crypto sphere have also impacted ADA's price. The SEC's allegations against industry giants Binance US and Coinbase labeled several crypto assets as securities, including ADA.
As reported by U.Today, Coinbase CEO Brian Armstrong recently mentioned that the leading exchange might delist ADA and other tokens that were mentioned in the lawsuits.