The number of addresses holding Cardano (ADA) has continued to grow in April to a new all-time high of 5.2 million, even as activity on the cryptocurrency’s blockchain plunges.
According to CryptoCompare’s latest Asset Report, the number of addresses holding ADA has increased by 2.99% in the last month to 5.2 million, thanks in part to an increase in the number of token holders from 529,000 in March to 679,000 in April and an increase in the number of cruisers from 3.84 million to 4.14 million. The report details that short-term traders holding ADA fell 44.6% from 682,000 in March to 377,000 last month.
The CryptoCompare report details that activity on the Cardano blockchain “experienced a significant hit in April” after monthly transactions fell 62.2% to 1.17 million, while addresses only average activity fell 57.7% to 52,000.
Similarly, the daily number of new addresses decreased by 59.1% to 23,200. Meanwhile, the cryptocurrency’s average transaction fee doubled from $0.42 in March to $0.91 in April.
Notably, on-chain data shows that most ADA holders are still accumulating while activity has slowed down. Retail interest in cryptocurrency, as reported, is “rapidly increasing.” At the same time, whales have recently reentered an accumulation trend after selling off their holdings over a 7-month period that saw them dump a large amount of ADA on the market.
Whales and retail users have restarted accumulating the cryptocurrency after its price dropped to a 15-month low. The ADA price has been slowly declining over the last few months after hitting a $3 all-time high in August.
ADA investors appear to have held their money during the bear market. Data from Coinbase’s pricing pages shows that ADA has a typical retention period of 121 days. ADA users on the platform hold their assets for more than four months before selling them or sending them to another account or address.
According to the cryptocurrency exchange, a long hold time signals an accumulation trend, while a short hold time indicates the increased movement of tokens.
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