Cardano, the eighth largest network has continued to see significant developments this year. Despite that, the network didn’t quite build any enthusiasm amongst dominant buyers (whales). One can blame, the native token, ADA’s decline for that matter.
Not so keen here
ADA has had a difficult journey since its inception. Even at press time, despite a 4% surge ADA failed to surpass the $0.5 mark. It appeared that whales were choosing other networks than Cardano.
It’s no secret that in a speculative market like crypto, top holders dictate where prices might move next. Interestingly, it wasn’t the case with Cardano.
The token holders between 10k to 1m ADA made up 27.3% of the supply, and they owned 30.5% just three months ago. This was just over 10% of their personal supply being dumped to exchange wallets and smaller unknowing addresses.
A significant drop to say the least. Also, Cardano, like several other cryptocurrencies, saw a drop in the demand for its token. According to Santiment, the trading volume of ADA this year declined by more than 70%.
Well, existing ADA holders suffered more than 90% in losses, which further explains the aforementioned grim scenario. In addition to this, Cardano’s Vasil Hard fork delay further aggravated the negative sentiment.
In an announcement blog published on 20 June, the Input-Output Global (IOG) confirmed the decision of the developer team, “not to send the hard fork update proposal to the testnet to allow more time for testing.”
The team stated that although the “engineering team is extremely close to finalizing the core work,” there are “seven bugs still outstanding to complete the hard fork work.”
Historically speaking, ADA has been known to spike and note a rally post a bearish streak. This time, ADA needs to reclaim the critical level of $1 if it ever intends to recover its losses. As mentioned in an earlier article, ADA might see a 125% rally after 1 August.