Following Grayscale’s late-August triumph against the SEC for its spot Bitcoin ETF, Cardano (ADA) witnessed a surge in staking as investor confidence soared. However, this newfound optimism appears to have been short-lived.
However, recent data from Santiment, a cryptocurrency analytics platform, has shown that Cardano (ADA) whales have sold a significant portion of their holdings, totaling around 1.02 billion ADA worth approximately $265 million within the first week of September. This information was also tweeted by the renowned crypto analyst Ali on Twitter (formerly known as Twitter). Ali highlighted that these whale accounts held between 10 million and 100 million tokens each, collectively possessing a noteworthy 11.95 billion ADA, which represents approximately 33.3% of the total ADA token supply.
Compounding the bearish sentiment, Cardano staking has seen a significant decline from 63.3% to 62.84% within the same week. In numerical terms, Cardano holders unstaked a substantial 175.4 million ADA tokens, accounting for 0.5% of the total circulating supply.
Further insights from Intotheblock an on-chain analytics firm, indicate that a majority of Cardano holders who bought between $0.2143 and $0.2939 are currently facing losses. Approximately 40,000 addresses acquired around 2 billion ADA coins at a peak price of $0.29, while only 21,780 addresses obtained approximately 100.28 million ADA at a minimum price of $0.24. In recent days, Cardano (ADA) has seen its price consolidate within the tight range of $0.2527 and $0.2591.
According to a report by Todayq News on August 8, 2023, there are only three whales holding approximately 3.23 billion ADA tokens, which is equivalent to 9.39% of the total Cardano supply. In contrast, 140 investors collectively possess a substantial 7.68 billion ADA tokens, equivalent to 22.35% of the total holdings. Moreover, the majority of ADA holdings are in the hands of retail investors, who own around 23.46 billion ADA tokens, amounting to 68.26% of the total. This significant ownership by retail investors has the potential to absorb any dumping, making the Cardano ecosystem stronger and more resilient.
In a recent report by Todayq News, Cardano, as a third-generation blockchain platform, exhibited consistent growth. Transactions on the network had increased by 6.1%. Earlier in the year, the network implemented several upgrades that resulted in a surge in transactions, attracting attention from a diverse range of stakeholders.