On-chain data, also known as off-chain data, reveals a significant increase in the on-chain activity of Cardano (ADA), a major altcoin, which corresponds to the increase in price. The data indicates that Cardano’s wallet address activity and the number of large transactions have reached levels not seen in over three months.
Insights from Cardano Wallets and Transactions
On-chain data provided by the Zeri platform IntoTheBlock shows that 61% of ADA investors have been holding their assets for over a year without selling. This indicates a strong long-term investor base for the Cardano ecosystem and ADA. The percentage of large investors in Cardano is currently 29%.
However, the majority of wallet addresses (74%) are currently at a loss with the current prices. The high number of investors at a loss is seen as a positive signal as it could prevent potential selling pressure on the price.
Furthermore, significant transactions worth over 22.56 billion dollars have been conducted in the past 7 days in terms of trading volume. Although the number of whale-level wallet addresses (holding more than 1% of the circulating supply) is low at 3, the inflows and outflows among large ADA investors are significant. The 30-day change in this metric shows an increase of over 1,124% in inflows and 209.14% in outflows.
ADA’s Price Performance and Potential Catalysts
Cardano’s price performance is supported by positive on-chain data, and the popular altcoin is currently trading at $0.3185 with a 4.28% increase in the last 24 hours. Furthermore, ADA’s trading volume is at $465.14 million, representing an increase of over 30% during the same time frame.
Analysts who look at ADA from a technical perspective emphasize the importance of surpassing the significant level of $0.30. According to them, for the upward trend to continue, the price must stay above this level.
The ongoing Cardano summit, where blockchain enthusiasts and developers come together, is seen by the community as a potential catalyst for further positive sentiment that could potentially reflect on the altcoin’s price. The approval of a spot Bitcoin exchange-traded fund (ETF) in the US is also considered another significant catalyst for a potential price increase in ADA.
