Cardano Whales Devour Dip, Why They Don’t Care About Price Action
Despite the bloodshed of the crypto market, Cardano (ADA) trading activity has been relentless in recent days, and its holders’ balance remains strong with a multi-year high.
in the block data indicates that the long-term portfolio balance of Cardano holders reached a multi-year high on February 23.
“Regardless of the price action, cardano‘s holders remain strong. The balance held by HODLERS addresses with a maturity of >1 year is at a multi-year high. These HOLDERS increased their positions to 10.12b $ADAthe largest balance since December 11, 2019.”
Source: in the block
Despite the geopolitical tension that has caused the price of the altcoin to fall dramatically, traders have increased their holdings in Cardano.
Holders have the highest balance of ADA since December 2019. The recent developments of Cardano’s network could serve as fuel for its supporters, and as a result, many believe the price will rise.
“Every bounce is still selling, waiting for a last leg for a turnaround. Would consider buying this for 0.50,” an analyst noted†
a finder poll indicated that several analysts believe ADA’s price will reach $58 in 2030, with a few believed it could close at $2.72 this year, a 160% increase. Many traders took the $58 forecast as an exaggeration unless the Cardano ecosystem really explodes in the coming years.
Expert Vanessa Harris was also optimistic about the altcoin. She expects it to close around $3 in 2022, adding that the criticized sluggish growth could pay off if countries set their eyes on it:
“It is one of the few smart contract platforms that offers security, correctness, [and] decentralization at the core, supported by formal methods and peer-reviewed research… While this means Cardano acts more consciously in the short term, in the long term this resilience should support adoption by nation-states and non-governmental organizations. We are already seeing this adoption happening in Ethiopia and Tanzania.”
However, other pundits remained bearish, calling “lack of execution and poor technology” and claiming that “they have failed to deliver on their promise of delivery in recent years.” But slow as it is, the expansion of its DeFi ecosystem is starting to happen and could bolster the sentiment of its loyal holders.
Related literature | Cardano daily transaction volume up, but ADA prices remain sluggish
Cardano DeFi Expansion
Cardano volumes and transactions are growing as developers focus on building the first dApps solutions and the DeFi space will grow. It has even surpassed Ethereum’s on-chain activity in second place in 24-hour transaction volume after registering $17.04 billion on Feb. 22.
In terms of gaining traction, the decentralized exchange SundaeSwap, an Automated Market Maker DEX, was anticipated by many users and launched at the beginning of the year. It was disappointing in the beginning due to crowds. But after some block size adjustments made by IOHK, transactions are now running smoothly and SundaeSwap reports a Total Value Locked of $21 million.
The rise of NFTs also adds to the appeal of Cardano blockchain. The non-custodial decentralized exchange ecosystem Arcadex will be launched on the network soon. It has sparked enthusiasm for offering a wide variety of DeFi services through both DEX and NFT marketplaces.
Despite sluggish growth and 6-month downtrend, Cardano is still gaining momentum and the holders won’t let go. More growth is expected as the Cardano roadmap focuses on increasing scalability.
Related literature | Bitrue announces support for Cardano (ADA) as base pair on exchange
Price of ADA
At the time of writing, Ada is down to $0.83, representing a loss of about 0.72% in the past 24 hours.
Cardano price down to $0.83 in daily chart | Source: ADAUSD on TradingView.com