The most current cost plummets in the cryptocurrency market have actually not deterred large investors from accumulating more parts of specific properties. This became apparent for Cardano’s native token, as on-chain data exposed that some ADA wallets have more than doubled their holdings in less than 2 weeks.
ADA Appetite Increases With Lower Prices
It’s safe to say that the cryptocurrency area went through a steep correction since the middle of January, wiping more than $500 billion from its cumulative market cap in a week at one point. Cardano, which increased to a six-week high on January 18th at $1.65, was amongst the most damaged assets.
ADA decreased by 45% in 4 days from the aforementioned regional peak to $0.92 on January 22nd. Ever since, the token has reclaimed a few of its lost ground and trades above $1, however it’s still about 25% down on a year-to-date basis.
Nevertheless, this slump hasn’t dampened financiers’ hunger for the property. Simply the opposite, as exposed by information from Santiment. The analytics resource reported that addresses holding in between 10,000 and 1,000,000 tokens increased their bags by nearly $55 million worth of ADA in less than two weeks.
From a portion viewpoint, this suggests that their holdings increased by more than 110% in 11 days.
#Cardano ‘ s cost, like lots of #altcoins, have actually dropped in the previous 10 days, dropping -34%. However, big addresses holding between 10k and 1M $ADA, own 113% more in their cumulative bags considering that the drop on January 17th, collecting $53.6 M in tokens. https://t.co/9V50jyrBlX pic.twitter.com/tQdwa7ym38
— Santiment (@santimentfeed) January 28, 2022
It’s worth keeping in mind that IntoTheBlock data showed something similar for BTC too. As reported yesterday, whales and long-term holders have actually continued building up throughout the price crash, in which bitcoin came by $10,000 in days.
Cardano’s Network Issues
While the hunger for the native token appears to be strong, the network behind it has actually been experiencing some concerns lately.
Reports began to emerge last week that many deals failed due to congestion on the blockchain following the launch of the first Cardano-based dApp– SundaeSwap.
With other applications beginning to operate on the blockchain, the congestion just increased in the following days. In reality, the blockchain load on Cardano began to surge in the middle of January and peaked on the 21st at 94.1%. It has stayed above 90% for almost two weeks now.
Cardano increased its block size by 12.5% two months ago, but this does not seem to have the required effect. As such, the team aims to present a layer 2 scaling service throughout the next Hydra upgrade in the future this year.