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According to a recent analysis, the percentage of whales with more than 10 million ADA on their balances hit 46.66 percent on Monday, the highest level since the digital asset was trading for cents.
The holder’s token, ADA, has always been a holder’s token. The network now has one of the greatest percentages of its circulating supply staked by investors.
These investors typically believe that the greatest way to profit is to stake and earn tokens while also assisting in the network’s security.
This is what has led to the tremendous support for the digital asset, and it appears that the whales aren’t immune to this, as their holdings have continued to grow.
Rise of ADA
ADA, like every other digital asset, has its share of whales. These whales, who own more than 10 million ADA, control a major portion of the token’s circulating supply and have kept their holdings low for the past two years.
However, as the price of the digital asset has fallen, whales have taken advantage of the opportunity to grow their holdings, resulting in the greatest percentage of the digital asset in the last two years.
Whales are controlling ADA
Cardano’s ADA coin remained virtually unnoticed by traders until the end of November after it was launched in September 2017. Since then, the cryptocurrency’s value has risen by 1,520 percent.
At the time of writing, the value of the whales’ tokens had risen to $15.28 billion. This represents 46.19 percent of the total supply, implying that these whales control half of the digital asset’s market capitalization.
The holder is directly linked to the decline in the value of the digital asset. This concentration had lessened when the price of ADA reached an all-time high of $3.10, presumably because the whales had sold tokens for profit and smaller investors had taken them up.
However, as the price fell, this percentage increased, and the greater the number of tokens held by these whales, the lower the price fell.
About Cardano
Most cryptocurrencies have had erratic growth paths, even as they have risen to prominence in recent years.
Their reputation has been ruined by scandals, hacks, and disagreements that resulted in hard forks.
Cardano is a blockchain project founded by Charles Hoskinson, the Ethereum co-founder, with the purpose of “building a more balanced and sustainable ecosystem” for cryptocurrencies. ADA is the only coin with a “scientific approach and research-driven methodology,” according to its website.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
