Whale investors are accumulating Cardano’s native token (ADA/USD) as the programmable blockchain’s decentralized finance (DeFi) protocols see rapid growth, CoinDesk reported.
Last week, addresses that held 1-10 million coins rose to a record 12 billion ADA ($9.72 billion), up more than 40% from the end of January, data by blockchain analytics firm IntoTheBlock show.
Cardano TVL rose by $50M in a week
Total value locked in the Cardano network grew by $50 million in a week to an all-time high of $160.79 million. Over two-thirds of the funds are locked in decentralized exchange (DEX) SundaeSwap.
Lucas Outumuro, head of research at IntoTheBlock, said in a weekly report, quoted by CoinDesk:
Cardano appears to be showing signs of promise for more to come after years without launching smart contracts. This appears to be translating into an accumulation of ADA from large players. After years of lacking smart contract capabilities, Cardano is starting to show some traction in its application layer. DEXes on Cardano have raised capital from reputable crypto funds such as Three Arrows Capital.
AdaSwap announced $2.6M fundraise last week
Last week, Cardano-based DEX AdaSwap raised $2.6 million in a funding round led by VC firm iAngels and angel investors such as actress and producer Gal Gadot.
According to Outumuro, whales’ renewed interest may be a sign of good times ahead as long as the broader market finds a footing. Whale selling at the beginning of September emerged to be a sign of an upcoming price drop. He added:
These addresses had previously sold a large amount of their holdings right before ADA began to crash.
About Cardano
Cardano’s token ADA is the eighth biggest coin by market cap. Cardano is one of the biggest blockchains to successfully use a proof-of-stake consensus mechanism, which is less energy intensive than the proof-of-work algorithm relied upon by Bitcoin (BTC/USD).
All of the technology developed goes through a process of peer-reviewed research, meaning that bold ideas can be challenged before they are validated.
According to the Cardano team, this academic rigor helps the blockchain to be durable and stable, increasing the chance of anticipating potential pitfalls. At the time of publication, ADA was trading for $0.81 and had lost 2.38% in the last 24 hours.
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from Cardano – Invezz
