A group of investors is likely behind the latest ADA price action which led the asset to increase by 75% according to the on-chain data that we have in our Cardano price news today.
Unlike Bitcoin which is trading at the same price, Cardano was erupting higher than the same time frame. Over the past 14 days, ADA rallied from $0.053 to a local high of $0.094 which is a 77 percent difference. This rally allowed ADA to retake its seat as the tenth-largest cryptocurrency, surpassing Tezos and Stellar’s XLM.
According to the analysis shared by the blockchain analytics firm IntoTheBlock, behind the latest price surge of Cardano was fueled by a group of Investors. $7 billion worth of cryptocurrency which is about 300 percent of the market capitalization, was transacted by ADA holders on May 31 alone which is 1700% higher than of the day before. The major increase in the volume of ADA transactions came as there were only a few investors on social media platforms such as Twitter that were interested in the asset, further confirming that it was the whales that drove the price surge.
While the volume of the large transactions has subsided since the spike, the volume remains at high levels according to the data which should be supportive of another upside in ADA price. Other on-chain metrics corroborate this sentiment. The In/Out of the Money indicator from IntoTheBlock showed that a few days ago there was little resistance until ADA rallied to $0.11. Now that we know who is behind the recent ADA rally, it is only fitting that we take a look at what actually led the price to rise.
As per the reports, the rally began around the time of the Shelley launch which is supposed to bring the new era of smart contracts to the blockchain which has underperformed its competitors such as Ethereum in terms of adoption. According to the founder Charles Hoskinson, the blockchain is not at a point of processing 1000 transactions per second, surpassing any other leading blockchain out there. According to Santiment blockchain on-chain data, we can read the following analysis:
“ADA continues to show signs of strength in the market, and there are some emerging decoupling indications. Year to date, its impressive development activity rate continues to rise.”
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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