Is Cardano Highly Underrated? Whales have been stocking up since November

Few cryptocurrencies have risen as much in the past bull market as cardano (ADA). But we are now in a bear market, and like most coins, ADA has fallen hard again. Still, certain investors have been stocking up for several weeks, which may make the token deeply undervalued, says on-chain analyst Santiment.

Santiment reports that ADA investors are “aggressively accumulating.” The so-called ‘sharks’ and ‘whales’, or investors with 100,000 to 10 million ADA holdings, have been hitting hard since mid-November. Meanwhile, the price has dropped by more than 20% since then.

These traders find the price attractive enough not only to buy during the bear market, but also to withdraw their investments from exchanges. The data actually measures the amounts in individual wallets, but most exchanges leave customers’ tokens in only a few wallets. This indicates that these buyers probably do not intend to sell quickly.

📊 Is #Cardano severely undervalued at this point? One or @santimentfeed‘s key community members certainly sees data making this case, such as sharks & whales (holding 100K to 10M $ADA) accumulating aggressively these past 6 weeks. Read the latest insight! https://t.co/TPskmWBsOH pic.twitter.com/HC0aEWIVns

— Santiment (@santimentfeed) December 27, 2022

Furthermore, Cardano’s chart has a ‘gap’ in volume between 26 cents and 20 cents. That means traders could buy or start buying back a lot of ADA here. Investors have already sold so much that the sellers are starting to get exhausted. After all, the tokens to be sold will run out once.

Cardano network has grown rapidly

The popular network has undergone a ton of changes this year. Last week, the Cardano Foundation announced that despite the bear market, the network has processed 139% more transactions compared to last year, and that it hosts 47% more wallets. Last month it also became clear that the number of smart contracts has increased by no less than 300%.

One of the reasons for this was the Vasil hard fork. With this upgrade, transactions became faster and cheaper. This would have been one of the main reasons for the enormous growth. The network will also get its own algorithmic stablecoin in January.