Cardano bulls struggle to push ADA higher despite developments in Ethereum-killer token

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. 

Also read: Bitcoin traders watch US Fed’s interest rate decision to plot likely return to $30,000

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. 

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. 

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.