Cardano addresses with between $100 and $100,000 worth of the network’s native $ADA token have seen their percentage of the cryptocurrency’s supply rise to a new all-time high, at a time in which “whale tier” addresses hold an all-time low.
According to on-chain analytics firm Santiment, Cardano addresses with less than $100 worth of ADA and with up to $100,000 worth of the cryptocurrency – dubbed low tier and mid tier addresses – have been consistently accumulating over time.
Meanwhile, Cardano addresses with over $100,000 worth of ADA have been seemingly dumping their holdings over time while the price of the cryptocurrency moves past the $1.2 mark for the second time this year, with the first being in early January. ADA’s price hit a $3 all-time high late last year and has been steadily dropping since.
Santiment’s data notably points out that low tier holders – those with less than $100 in ADA – have been steadily accumulating but only command 0.128% of the cryptocurrency’s supply, while mid tier holders hold 16.8% of it. Whales hold the reaming 83.1%.
The increased accumulation from smaller holders is occurring at a time in which institutional appetite for ADA grows, with the volume of on-chain transactions above $100,000 increasing “by 50x in 2022.”
The Cardano network recently hit a new milestone, as according to Morgan Schofield, Head of Ecosystem Growth at Cardano, the network has now issued more than 4 million native tokens on top of it across nearly 50,000 minting policies. In effect, over 4 million non-fungible tokens and non-ADA tokens are now circulating on Cardano.
The milestone comes amid a wide cryptocurrency market recovery that saw Cardano briefly lead major altcoins in terms of price performance. Cardano’s performance may be related to its booming decentralized finance ecosystem, which has recently topped the $300 million mark — $400 million if we count staking – when it comes to total value locked.
As CryptoGlobe reported Minswap, an “automated market-maker (AMM) decentralized exchange (DEX) on Cardano which supports multiple pricing functions for a single liquidity pool” has recently become its top DeFi project, followed by SundaeSwap, a decentralized exchange backed by cFund, Alameda Research, and Double Peak Group.
Earlier this week, Nasdaq-listed cryptocurrency exchange Coinbase (NASDAQ: COIN) added Cardano to its staking offering, allowing users to earn a yield on their ADA holdings on the exchange by participating in the network’s Proof-of-Stake mechanism.
According to an announcement published by Coinbase’s Senior Product Manager Rupmalini Sahu, the rollout is part of Coinbase’s plans to scale its staking portfolio throughout the year. In the announcement, Sahu noted Cardano “aims to enable smart contracts to allow developers to build a wide range of decentralized finance (DeFi) apps, new crypto tokens, games, and more.”
Coinbase’s move came as the transaction volume seen on the Cardano network explodes and the total value locked on its decentralized finance (DeFi) applications keeps on growing.
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