Cardano has registered a notable spike in whale activity in 2023 as large-scale transactions to the tune of $100k have reached last year’s May levels.
Not only that, but since the beginning of 2023, 36 new whale addresses ranging between 1 million- 100 million worth of ADA have flocked into the Cardano ecosystem.
As noted by blockchain analytical platform Santiment, historical trends revealed that the last time there were this many $100k+ ADA transactions was in May, & its price jumped over 36% from the beginning of that week until its local top in early June.
An increase in whale numbers and large transactions is certainly a positive sign for the price of ADA. This is because demand for the coin rises as more whales enter the market, thus driving up its value.
Additionally, the large transactions indicate that whales are confident in the future of the coin and are willing to make big investments in it.
This bullishness is likely to spread among other investors, which will raise the price even more.
ADA, at the time of writing this article, is up by 3% in the last 24 hours at $0.39. In recent times the token has put up a brave front against its 2022 bottom at $0.24.
Investors are particularly optimistic as the eighth largest crypto asset by market cap began 2023 on a spectacular note with prices up by 60%.
Cardano might also be well-positioned to profit from the recent milestone achieved by its newest stablecoin, DJED.
Cardano Ecosystem Is Booming
Since the DJED token was launched in January, the protocol confirmed recently that a total of 30 million ADA coins have been locked up in its smart contracts.
A significant effect of the locked ADA on DJED smart contracts, according to community members, might boost Cardano. This conclusion is expressed in the limited amount of ADA in circulation, a trend that, if it persisted, would generally increase the coin’s value.
According to the law of supply and demand, a decrease in the supply of ADA may result in an imbalanced demand that would ultimately lead to a future price rise.
Apart from that, Cardano’s developing firm IOHK rolled out its native Ethereum-compatible sidechain on the public net, TronWeekly reported.
The firm hoped that in the near future, “a family of Cardano sidechains and partner chains will emerge,” paving the door for “wide adoption” of the Cardano ecosystem.