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Tomiwabold Olajide

Accumulation phase for Cardano continues as shark addresses keep on buying coins

On-chain analytics platform Santiment notes that supply is moving out of high/whale-tier addresses, i.e., holders of more than 100,000 ADA. It notes that this declining supply is being absorbed by the low-mid and high-mid tiers accumulating consistently.

According to a chart shared by the on-chain analytics firm on April 4, Cardano holders with ADA worth between $100 and $100,000 have set record highs of 16.8% of the available supply.

Per the data provided, low-tier addresses (those with less than $100 in holdings) have only 0.128% of the ADA supply in their wallets, but they are increasing in numbers.

Developments and price action

ADA rebounded from lows of $1.10 on April 1 to reach highs of $1.23 seen at the time of publication. Presently ADA remains down 60.95% from its all-time highs of near $3. As ADA continues in its attempt to recoup these losses, the accumulation phase for Cardano continues as shark addresses keep on buying coins.

According to recent data from IntoTheBlock, ADA had a 50-fold rise in on-chain transaction volume, which resulted in an infusion of institutional funds to the network. The project’s increased fundamental value is reflected in the rapid increase in institutional volume. Since the beginning of the year, additional use cases for the blockchain are continuously being developed—for instance, the EVM-compatible Layer 2.

The Milkomeda Foundation announced the creation of C1, an Ethereum Virtual Machine-compatible sidechain that is directly connected to the Cardano blockchain, as previously reported by U.Today.

Users may now move assets effortlessly between the two blockchains, allowing popular Ethereum-based decentralized apps (dApps) to function on top of Cardano. This is achieved with wrapped smart contract technology, which was recently pioneered by Milkomeda.

With the release of new solutions on the chain, Cardano becomes more relevant to institutional investors that often look for real value behind the project rather than speculative returns.

ADA presently outperforms the top 10 in 24-hour gains, up 4% at $1.21 per CoinMarketCap data.

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