As Cardano approaches the highly anticipated Chang upgrade, its native cryptocurrency ADA is experiencing notable market movements and heightened investor interest.
The Chang update marks the beginning of the Voltaire era, which promises to introduce decentralized governance mechanisms, setting the stage for Cardano’s next phase of growth.
Inflow of Cardano’s large holders increase
Recent data highlights a surge in Cardano’s large holders’ inflow, demonstrating a dramatic 10,878% increase in just one day.
On July 22, these addresses saw an inflow of 5.14 billion ADA, valued at approximately $2.1 billion according to IntoTheBlock data.
This sharp rise reflects a robust accumulation campaign by whale investors, contributing to a broader revival of interest in the cryptocurrency market.
This influx of large holders is significant, as it represents 0.1% of Cardano’s circulating supply, suggesting strong potential for a market rebound.
In addition to the large holders’ influx, there has been a noticeable shift in Cardano’s investor base. Long-term holders, or Hodlers, have increased their balances over the past three months, accumulating nearly 2 billion ADA.
Conversely, shorter-term investors, including Cruisers and Traders, have reduced their holdings, reflecting a strategic move in response to recent price corrections.
The Cardano network has also made significant strides, reaching a milestone of 94 million transactions.
The total value locked (TVL) in the ecosystem has surged by 38%, climbing from $172.78 million to $237.65 million according to DeFiLlama data.
This growth underscores the increasing adoption and utilization of Cardano’s network amid broader market developments.
Cardano price drops
Despite the optimistic among large Cardano (ADA) holders, ADA has faced some volatility in recent days.
Over the past 24 hours, Cardano’s price has dropped by 4.8%, settling at $0.4174 at press time.
This decline is part of a broader negative trend observed over the past four months, where ADA has experienced a 46% drop from a high of $0.7742 in March.
The trading volume has also decreased by 31%, aligning with a reduction in the overall circulating supply, which now stands at 35.58 billion ADA, about 79% of its maximum supply of 45 billion.
The Chang upgrade is expected to further enhance Cardano’s capabilities, particularly in the realm of decentralized governance.
As the network transitions into the Voltaire era, stakeholders are optimistic about the potential improvements in decision-making processes and governance structures. The Chang upgrade could bolster investor confidence and drive additional adoption.
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