Cardano bulls struggle to push ADA higher despite developments in Ethereum-killer token
- Cardano network’s recent developments like Djed’s arrival on Ethereum-compatible sidechain are expected to fuel ADA recovery.
- Cardano network’s large wallet investors recently shed more than 2 billion ADA token holdings since mid-April.
- Despite consistently high transaction volume and daily active address count on the Cardano blockchain, the altcoin has yet to begin its recovery.
Cardano blockchain’s on-chain activity is on the rise. Despite a spike in daily active addresses and high transaction volume, ADA bulls are struggling to fuel the asset’s recovery.
There is a significant decline in whale holdings of the Ethereum-killer token, signaling a shift in sentiment among large wallet investors.
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Cardano’s Djed launches on Ethereum-compatible sidechain
Djed Alliance announced the new deployment of the stablecoin on the Ethereum-compatible sidechain of Cardano. Milkomeda-C1. The development could act as a catalyst for the Ethereum-killer token’s recovery.
Cardano’s builders at Input Output Global announced the progress in the development of Hydra, Cardano’s Layer-2 scalability solution. The team is gearing up for the 0.10.0 release and resolving challenges in the test suites. These developments can act as bullish catalysts for Cardano in the long-term, driving the asset’s recovery.
Cardano whales shed ADA token holdings
Large wallet investors on the Cardano network have shed more than 2 billion ADA tokens since April 19, based on data from crypto intelligence tracker Santiment. There is a steep decline in whale wallet holdings of ADA, and this implies a shift in sentiment among holders.
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Cardano whale wallet ADA holdings decline
Typically, a decline in the asset held by large wallet investors is bearish for the altcoin. Whales in all three segments together shed more than 2 billion ADA worth upwards of 773 million.
Interestingly, other on-chain metrics like the count of daily active addresses on the ADA network and the transaction volume have continued to increase, despite the shifting whale activity.
ADA holders consistent in on-chain activity
Based on data from Santiment, the number of daily active addresses on the Ethereum-killer blockchain, and the transaction volume have maintained their consistency, despite shifting allegiances seen in whales.
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Cardano on-chain activity
The on-chain activity in the chart above signals the last spike in transaction volume was seen on April 27, since then there has been consistency in trade volume on ADA. Similarly, daily active address count is nearly the same level as seen throughout April 2023. ADA holders are active on the Cardano blockchain, awaiting a recovery in the asset’s price.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
