As the price of the smart contract platform Cardano (ADA) surgs by more than 14% over the past week, the cryptocurrency’s network has been seeing a “historically bullish” signal as the total number of ADA addresses drops.
According to on-chain analytics firm Santiment, the total number of ADA addresses dropping is a “good sign,” as typically “declining wallets is a sign of small holders capitulating & selling to whales at a loss.”
The firm has posted on the microblogging platform X (formerly known as Twitter) a chart showing that 32,100 ADA wallets were liquidated as ADA’s price outperformed the flagship cryptocurrency Bitcoin earlier, before the pattern was once again repeated.
This capitulation from smaller ADA holders comes at a time in which the Cardano network has been seeing a significant increase in the volume of transactions exceeding $100,000 as these consistently reach new highs, indicating institutional investors and whales’ growing interest in Cardano and its native cryptocurrency ADA.
Large-scale investments tend to bring liquidity and stability to the market, which can attract more investors. However, it’s important to note that the cryptocurrency market is known for its volatility, and investor sentiment can shift rapidly.
The rise in large investments also comes amid a growing number of bullish Cardano price predictions ,with various analysts predicting Cardano could move to as much as $30 by next year, and with one price prediction pointing to a surge of as much as 10,000% for ADA by 2025.
The Cardano network has been steadily growing, having seen the creation of 9.1 million native tokens and the establishment of over 81,400 token policies. The network has processed over 79 million transactions.
Featured image via Unsplash.
