Santiment, a market analytics platform, has reported that crypto wallets holding $10,000 to $100,000 worth of Cardano (ADA) have accumulated the largest amount of ADA in almost a year. According to data from Santiment, these whales and sharks have added an additional $116.1 million worth of ADA to their holdings since May. Furthermore, transaction volume on ADA has surged to over $67 billion.
The accumulation of ADA by affluent crypto investors can be attributed to the token’s discounted price. In June, Cardano’s value plummeted from $0.37 to $0.26 after the U.S. Securities and Exchange Commission (SEC) claimed in its Coinbase lawsuit that ADA is a security. However, Cardano is currently trading at $0.30, experiencing a 2.22% increase in the last 24 hours.
Santiment suggests that other altcoins such as Solana (SOL), Toncoin (TON), and Hedera (HBAR) could also rally as Bitcoin (BTC) breaches the $30,000 mark. Profit-taking for Bitcoin is currently at its highest level in over three weeks. Santiment advises investors to keep an eye on the FOMO (fear of missing out) levels if prices continue to rise, with SOL, TON, and HBAR among the surging assets creating bullish narratives.
The market dynamics surrounding Cardano and other altcoins reflect the overall confidence being instilled in the crypto markets by Bitcoin’s pushback above $30,000. As Bitcoin gains traction, it positively influences the performance of other cryptocurrencies, leading to increased interest from investors.
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It is worth noting that the SEC’s lawsuit against Coinbase and its classification of ADA as a security had a significant impact on Cardano’s price. However, as the market stabilizes and Bitcoin continues to regain its footing, the appeal of altcoins like ADA is expected to rise.
Santiment’s data on ADA accumulation by crypto wallets with significant holdings suggests that investors are taking advantage of the discounted price of the token and are confident in its long-term potential. This accumulation is the highest level seen since September 2022, indicating a renewed interest in Cardano among high-net-worth individuals.
The surge in transaction volume on ADA over the past six months further supports this hypothesis. The increase in on-chain transaction volume signifies a higher level of activity and engagement with the Cardano blockchain. As more users interact with the network, it boosts its overall adoption and utility, contributing to the long-term value of the ADA token.
The positive sentiment surrounding altcoins like Cardano, Solana, Toncoin, and Hedera is a promising sign for the broader cryptocurrency market. While Bitcoin remains the dominant cryptocurrency, the interest in alternative digital assets suggests a growing diversification in investor portfolios.
In conclusion, Santiment’s data highlights the increasing accumulation of Cardano by high-value crypto wallets and the surge in transaction volume on ADA. This accumulation comes as the token’s price remains discounted due to regulatory concerns. The renewed interest in Cardano, along with the potential rally of other altcoins, reflects the growing confidence in the crypto market, fueled by Bitcoin’s resurgence. As the market continues to evolve, it will be interesting to see how these trends impact the overall cryptocurrency landscape.
