Cardano Whales Drive Big Transactions As Volume Declines
Cardano whales, the high-stake players in the crypto seas, have initiated a feeding frenzy, driving as much as $13 billion in daily transactions. Cardano whales have been quite active for the past few months....
Cardano whales, the high-stake players in the crypto seas, have initiated a feeding frenzy, driving as much as $13 billion in daily transactions.
Cardano whales have been quite active for the past few months. $13B in large transactions (>$100k) is being settled on Cardano daily on average. A significant amount, if you compare it to Ethereum's $5B 7-day average. pic.twitter.com/8rjeQZaonU
— IntoTheBlock (@intotheblock) January 18, 2024
Cardano Whales Vs. Shrinking Transaction Volume
This surge in activity has sent ripples through the crypto community, especially when compared to Ethereum’s more modest $5 billion seven-day average for transactions of a similar magnitude.
However, a closer look at the transaction volume statistics, as reported by Messari, reveals a contrasting narrative. Despite the eye-catching surge in whale transactions, the overall transaction volume on the Cardano network is declining. That adds another layer of complexity to the ongoing market dynamics.
The comparison of these figures against Cardano’s market capitalization and transaction volume relative to Ethereum is turning heads. Data suggests a potential shift in the behavior of significant investors within the Cardano network.
However, despite this surge in whale activity, the price of ADA has failed to ride the wave, entering into a period of relative stagnation.
Recent market dynamics have seen ADA losing momentum, breaching key support levels, most notably slipping below the 50-day Exponential Moving Average (EMA).
The breach of this critical indicator is often viewed as a litmus test for short to medium-term market sentiment. It often signals bearish territory and could lead to further declines or, at the very least, a consolidation phase. The 100 EMA is now ADA’s last line of defense, potentially providing a cushion against further price drops.
In addition, Cardano’s social momentum is all over the place lately. There are vast spikes of mentions intermixed with periods of near silence. Even so, the project’s overall social momentum remains in an uptrend.
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