Whale Holdings in Cardano's ADA Token Hit Record High

Large investors have boosted their coin stash by more than 40% this year.

AccessTimeIconMar 7, 2022 at 9:02 a.m. UTC
Updated May 11, 2023 at 4:38 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Large investors, known as whales, appear to be bargain-hunting Cardano's ADA token as the programmable blockchain's decentralized finance (DeFi) protocols see rapid growth.

The balance held by addresses with 1 million to 10 million coins rose to a record 12 billion ADA ($9.72 billion) last week, a 41% gain since late January, data provided by blockchain analytics firm IntoTheBlock show.

The total value locked in the Cardano network has increased by $50 million in a week, hitting a lifetime high of $160.79 million, according to DefiLlama. More than 70% of the funds are locked in decentralized exchange (DEX) SundaeSwap.

"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," Lucas Outumuro, head of research at IntoTheBlock, said in a weekly report published on Friday.

"After years of lacking smart contract capabilities, Cardano is starting to show some traction in its application layer," Outmuro noted. "DEXs on Cardano have raised capital from reputable crypto funds such as Three Arrows Capital."

Last week, Cardano-based DEX AdaSwap announced a $2.6 million fund raise led by venture capital firm iAngels and several other investors, including actor and producer Gal Gadot and her husband Jaron Varsano.

ADA's whale holdings (IntoTheBlock)
ADA's whale holdings (IntoTheBlock)

Whale holdings have increased by over 40% this year. "Following a 70% correction, these addresses have now been accumulating aggressively. This group, as well as those holding over 100M ADA, recorded double-digit growth month over month," Outumuro said.

The renewed interest by large investors may be a sign of good times ahead, assuming the broader market finds a footing. Whale selling in early September turned out to be an advance indicator of a price slide. "These [whale] addresses had previously sold a large amount of their holdings right before ADA began to crash," Outmuro noted.

ADA peaked above $3 on Sept. 2 and has lost more than 70% since then. The ninth-largest cryptocurrency by market value was last trading near $0.8080, a 5% drop on a 24-hour basis.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about