ADA’s Price Drops Amidst Decrease In Whale Transactions
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ADA’s Price Decline
Recent data indicates a concerning trend in Cardano (ADA) whale transactions. Popular market analyst Ali Martinez has raised concerns about the long-term growth prospects for ADA, citing a significant decrease in whale activity on the Cardano blockchain.
Martinez’s analysis on the X platform highlights a notable decline in whale activity on the Cardano network. According to his analysis, the number of whale transactions for ADA is at its lowest level since February 8th.
He opined that this decline in whale activity suggests an impending price drop or an extended period of consolidation for ADA. Despite recent milestones in on-chain transactions, including a notable increase in overall ADA transactions, the decrease in whale transactions paints a different picture.
While the total number of ADA on-chain transactions has exceeded 88.5 million, Whale transactions still stand at 202. Martinez further disclosed that transactions involving 1,000,000 to 10,000,000 ADA have declined from over 5.9 billion ADA in early March to around 5.79 billion ADA.
Data from the crypto analytics platform IntoTheBlock (ITB) corroborates Martinez’s analysis. The data shows a 12.56% decline in large-volume transactions over the past day.
Implications of Decreasing Whale Transactions
With fewer large investors actively participating in ADA transactions, the coin may lack the necessary support to withstand significant price fluctuations. Thus, ADA could struggle to break out of its current price drawdown and regain its bullish momentum.
Current Coinmarketcap data shows that ADA trades at $0.583, up 1.52% over the past 24 hours but down 10.44% in the last seven days. It is worth noting that market sentiments have impacted ADA’s price like many other altcoins. With whale transactions indicating a bearish outlook for ADA, the sustainability of ADA’s recent price uptick remains uncertain.
Cardano Founder Advocates For ADA Ownership
Meanwhile, Charles Hoskinson, Cardano CEO, stirred the crypto community by declaring that not holding ADA coins is a “major red flag.” This statement comes amid a surging interest in Cardano’s Proof-of-Stake (PoS) blockchain network.
Hoskinson’s remark was prompted by a question on the social media platform X (formerly Twitter), where a user inquired about the appropriateness of asking a potential romantic interest about their ADA holdings.
US States Approach Cardano Foundation For Blockchain Protocol Development
In a related development, Frederik Gregaard, CEO of the Cardano Foundation, revealed in a recent interview that several US states have approached the foundation to develop blockchain protocols to enhance transparency in voting systems. The move reflects a growing inclination towards blockchain technology to address concerns regarding the integrity of electoral processes.
Gregaard also noted a similar trend in the UK, indicating a global shift towards leveraging blockchain for governance and electoral transparency. Blockchain-based voting solutions could pave the way for more secure and verifiable electoral systems, addressing longstanding challenges associated with traditional voting methods.
The potential integration of Cardano’s blockchain technology into voting systems underscores the growing relevance of cryptocurrencies beyond being speculative investments.
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