Cardano (ADA) Market Update 05/03

Cardano (ADA), the native token on the namesake blockchain, recently fell to a more than one-year low due to whale dumping and a larger crypto crisis. However, its reduced prices are drawing substantial whale accumulation, preparing the token for a future recovery.

ADA is now trading around its lowest level since June 2021, at $0.7919. The cryptocurrency has lost about 40% of its value this year, making it the poorest performance among the top ten cryptocurrencies.

However, on-chain data suggests that ADA’s near one-year low seemed to be the token’s bottom. It is presently up around 6% from its low, and whales appear to be accumulating during the last five weeks.

According to data from blockchain intelligence firm Santiment, ADA whales have gone into accumulation mode over the last five weeks, purchasing more than $196 million ADA. Whale addresses with 1 million to 10 million ADA, according to Santiment, were the ones collecting.

This buildup also follows a seven-month whale dumping frenzy that saw ADA prices plummet roughly 300 percent from a record high in September 2021.

However, ADA is still dealing with negative market confidence, increasing inflation, and fears about interest rate rises by the US Federal Reserve. The cryptocurrency market has likewise been on a downward trend in April, with few triggers pointing to an uptick.

According to on-chain data, the number of daily transactions on the Cardano blockchain climbed by roughly 14 percent in April. The number of active addresses increased throughout the month, indicating that the blockchain was still attracting new users.

With its inclusion in a Grayscale fund, ADA has received considerable institutional interest throughout the year.

Recent ADA trading patterns also indicated that major trading houses were beginning to move more of the token, with deals over $100,000 accounting for roughly all of its daily volumes.

Because the blockchain uses a proof-of-stake methodology, it is more appealing to ecologically aware investors.

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