Ali Martinez, an on-chain and technical expert, was the first to point out the data, revealing that since March 21, around 42 addresses containing 1 million to 10 million ADA have been established. When the value of these whales holdings is considered, this is a huge rise. Martinez mentions this in his tweet.
Transaction history shows that #Cardano created a stable support floor at $1, but on its way up it may face resistance at $1.36 where 690K addresses had previously purchased 6.41 billion $ADA.
Breaching this supply wall could help the #ADA surge towards $2. pic.twitter.com/kFCXKxqqHr
— Ali Martinez (@ali_charts) March 29, 2022
He stated:
At first glance, the increase may appear tiny, yet these whales are worth between $1.2 million and $12 million in ADA.
Martinez’s discovery is backed up by data from crypto analytics and intelligence platforms. According to analytics, Cardano is now witnessing higher institutional demand. Whale transactions (those worth more than $100,000) on the Cardano network have surged 50 times in 2022 alone.
The number of whales on the #Cardano network has increased by 1.7%. Roughly 42 addresses holding 1,000,000 to 10,000,000 $ADA were created since Mar. 21.
The uptick may seem insignificant at first glance, but these whales hold between $1.2 million and $12 million in #ADA. pic.twitter.com/ELUsppKhCl
— Ali Martinez (@ali_charts) March 29, 2022
As of March 29, the Cardano blockchain has a total transaction volume of $69,09 billion, with institutional-level transactions accounting for 99% of this amount. Overall, the increase reflects well for ADA’s future price movement. The increased whale buildup is already affecting the price of ADA.
ADA has been on a tear recently. ADA is up 24% in the last week and is currently (10.06 IST) trading at $1.18. This spike has increased the asset market valuation to more than $40 billion. This places ADA sixth in terms of market capitalization, ahead of Terra (LUNA) and Solana (SOL).
What has been luring whales to Cardano?
The developments in the Cardano ecosystem have sparked a lot of interest in the ADA market. The debut of Milkomeda, a layer 2 interoperability sidechain of Cardano, is one of the most recent significant breakthroughs.
EVM compatible coins may now be bridged across the Cardano blockchain using Milkomeda. Milkomeda also provides a developer toolkit for Solidity, Ethereum’s native programming language. The sidechain enables new projects to be launched on the Cardano blockchain, as well as a large amount of liquidity to come into the ADA market.
