Recent insights show an increasing number of addresses owning 10k to 100k ADAs. The data suggests these addresses acquired 6% of ADA’s supply within the last five weeks. However, since November 2021, users holding 100K to 1M ADAs have faced a downward direction. The groups in between this range decreased from 37% to 17.7%.
More Information on the Data
From the data, it is evident that two different trends are bringing up a neutral indicator. The insights further considered the number of ADA transactions taking place across various exchanges.
As such, the report explains that there is a high selling activity on FTX and dYdX exchange. This shorting exercise was visible on a one-month chart from January to February 2022.
Another discovery was also made on Binance as the data records an increasing selling activity within the exchange.
ADA’s Price Analysis
Cardano ADA is currently showing bearish signs as sellers are dominating the market. Initially, buyers were in control of the market from the end of January to the begining of February 2022. Sellers then took over around February 8, 2022, dropping ADA’s prices from highs of $1.24.
The data from Santiment further explains that there were significant whale transactions involving ADA in May and September 2021. In most cases, whales acquire larger portions of coins and end up affecting the assets’ valuation in the market.
This tactic serves as manipulation since whales decrease liquidity and later sell the asset at a lower price. Such moves may attract bearish movements on ADA and cause a decrease in its value.
At the time of writing, the digital asset is trading at $0.92, with a 16.1%
loss within the last seven days. Market players could expect a price reversal as bulls prepare to take over in the coming days.
TVL and Daily Transaction Volumes on the Rise
A separate data shows a positive outlook despite the slow-moving trend in ADA’s prices. According to Google’s Cardano Blockchain insights, the total number of transactions rose to a new record high of 32M. The figure represents a 500% increase in transactions since March 2021. Between January 25 and February 23, 2022, more than 200k active addresses were operating on a 24-hour basis.
In another analysis, DeFi Llama suggests that there is an increase in ADA’s total value of locked (TVL) assets.
TVL is usually applicable in the DeFi space, where protocols allow individuals to use their digital coins. Once they deposit their holdings, the DeFi protocols provide investors with a certain amount of reward.
The TVL approach helps determine the amount of assets going through staking across different DeFi platforms. Hence, Cardano has locked assets worth more than $120M, an increase of 7.86% within the last 24 hours.
The analytics platform links the growing number of transactions with the launch of SundaeSwap. The new project, launched in January 2022, works as a liquidity provision protocol and a scalable decentralized exchange.