Cardano (ADA) experienced a significant shift in the ownership landscape during the month of October. Large holders, defined as addresses holding more than 0.1% of a cryptocurrency’s circulating supply, amassed nearly 1.89 billion ADA coins. But is this development good or bad news for the Cardano ecosystem?
Large Holders Netflow is a metric that measures the number of inflows minus outflows related to addresses owned by large ADA investors. This statistic provides valuable insights into the behavior of key stakeholders and their impact on the ADA market.
When large holders collect more ADA than they sell, this indicates bullish sentiment among the largest investors. In this case, it indicates that they believe in Cardano’s long-term potential and are willing to hold on to their assets, possibly anticipating future price increases.
$ADA received a strong vote of confidence last month. Large holders collected 1.89 billion ADA last month, which translates to more than $600 million at current prices.
Most of the accumulation occurred between $0.249 and $0.271.
https://t.co/FCp16WINDG pic.twitter.com/cIRpSDC1fR
— IntoTheBlock (@intotheblock) November 7, 2023
Conversely, if large holders were to offload their ADA shares in large quantities, it could be seen as a bearish sign, indicating a lack of confidence in the project or an impending market downturn. However, the data shows that these are accumulating, which could be seen as a positive indicator.
Current price and recent performance of ADA
According to the latest data from Coin gecko, Cardano (ADA) is trading at $0.369344. Over the past 24 hours, the ADA price has risen 3.3% and 20.4% over the past seven days. These price movements indicate growing interest and confidence in ADA among investors.
ADA market cap reaches $13 billion today. Chart: TradingView.com
In addition to the accumulation of major holders, Cardano has also made waves in the field of blockchain development. According to Santiment, a leading analytics company, Cardano is among the top blockchain in terms of development activity over a 30-day period. The project has registered a whopping 502.57 GitHub commits during this period.
Source: Santiment
Cardano’s strong development activity
Santiment has previously emphasized that heavy development activity is a strong positive indicator for a cryptocurrency project. It means that developers believe in the protocol’s potential for success and are actively working to improve the technology. Such activities also reduce the chance that the project is an “exit scam” or a token without substance.
The recent accumulation of ADA by large holders, coupled with the positive price trend, indicates growing confidence in the Cardano ecosystem. Moreover, the active development of the blockchain and the commitment to improving its technology indicate a bright future for ADA.
While the crypto market is known for its volatility, these factors point to a favorable outlook for Cardano in the eyes of investors and developers alike.
(The content of this site should not be construed as investment advice. Investing involves risks. When you invest, your capital is subject to risk).
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