Cardano’s programmable blockchain’s decentralized finance (DeFi) ADA token has seen sharp growth as large investors, commonly referred to as “whales” appear to be picking up the asset which has fallen in price more than 30% this year.
ADA wallets containing one million to ten million tokens have increased 41% since January, according to IntoTheBlock, a blockchain analyics firm.
The Cardano network increased by $50 million of total value in a week hitting an all-time-high of $160.79 million, according to DeFiLlama. Decentralized excchange (DEX) SundaeSwap accounts for more than 70 percent of the funds that are locked.
“Cardano appears to be showing signs of promise for more to come after years without launching smart contracts,” said Lucas Outumuro, head of research at IntoTheBlock.
“This appears to be translating into an accumulation of ADA from large players,” , said in a weekly report published on Friday.”
Last week, venture capital firm iAngels along with several other investors raised $2.6 million into Cardano-based DEX, AdaSwap. Actress and model Gal Gadot and her husband Jaron Varsano were among the other larger investors.
“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.”
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.
In early September, whales began selling their ADA holdings, which cascaded to further price slide.
“These [whale] addresses had previously sold a large amount of their holdings right before ADA began to crash,” Outmuro noted.
ADA peaked at $3.10 on September 2 and has lost more than 70% since then, according to coinpaprika. The ninth-largest cryptocurrency by market value was last trading near $0.802633, a 1.75% increase on a 24-hour basis.