The recent declines in cryptocurrency market prices have not prevented major investors from accumulating more bits of certain digital assets.
This became evident for Cardano, as data from Santiment revealed that some ADA wallets have more than doubled their holdings in less than two weeks.
🐳 #Cardano‘s price, like many #altcoins, have plummeted in the past 10 days, dropping -34%. However, large addresses holding between 10k and 1M $ADA, owning 113% more in their collective bags since the drop on January 17th, accumulating $53.6M in tokens. 📈 pic.twitter.com/tQdwa7ym38
— Santiment (@santimentfeed) January 28, 2022
Increased appetite with lower prices:
The cryptocurrency space has experienced a sharp correction since mid-January, wiping out more than $500 billion from its cumulative market capitalization in one week.
Cardano coin, which jumped to a six-week high on January 18 at $1.65, is among the hardest hit cryptocurrencies.
ADA price has fallen by 45% in four days from the aforementioned peak to $0.92 on January 22nd.
Since then, the price of the currency has regained some of the lost gains and is currently trading above $1.
But the ADA cryptocurrency is still down about 25% year-over-year.
Despite the stagnation that occurred, it did not dampen the appetite of investors for the asset, quite the contrary, as evidenced by the data received from “Santiment”.
Santiment reports that titles containing between 10,000 and 1,000,000 ADA have increased their holdings by nearly $55 million from ADA in less than two weeks.
From a percentage perspective, this means that their holdings rose by more than 110% in 11 days.
It’s worth noting that IntoTheBlock’s data showed something similar to Bitcoin as well.
As whales and long-term holders continued to pile up during the price crash, Bitcoin dropped by $10,000 in days.
Cardano network problems:
While Cardano’s appetite appears to be strong, the network behind it has been experiencing some problems lately.
Reports started emerging last week that many transactions failed due to congestion on the blockchain after the launch of the first decentralized application based on the Cardano blockchain called “SundaeSwap.”
As other applications started running on the blockchain, the congestion increased in the following days as well.
The load on the Cardano blockchain started in mid-January and peaked on January 21 at 94.1%. It has been above 90% for nearly two weeks now.
Cardano increased his mass size by 12.5% two months ago, but this does not appear to have the necessary and expected effect.
As such, the team aims to offer Layer 2 scaling solutions with an upcoming “Hydra” update later this year.
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