Saturday, October 1

Cardano Millionaire Count Rises 173% After ADA Price Hit New Highs


Cardano (ADA) addresses with a balance greater than $ 1 million have risen 173% during the latest ADA price rally.

Specifically, the ADA / USD exchange rate rose almost 200% after bottoming out at $ 1,007 on July 20. The pair reached its all-time high of $ 3.02 in the previous session, a move that followed with a 6.42% price correction to $ 2.73 at the time. of the writing.

Meanwhile, in the same period, the total number of Cardano wallets containing at least $ 1 million in ADA tokens increased from 3,625 to 9,830, according to information provided by data analysis platforms CoinMetrics and Messari.

ADA addresses with balances greater than $ 1 million. Source: Messari, CryptoQuant

Also, against Cardano’s 1,455% year-to-date (YTD) gains, the total number of ADA millionaires increased from 504 to 9,830, an increase of 1,850%. Which coincided with erratic spikes in Google Trends searches for the keywords “Cardano”, which indicate a retail interest.

Furthermore, the number of Cardano wallets with more than $ 10 million in ADA tokens increased from 504 on July 20 to almost 1,000. As of January 1, 2021, there were only 86 wallets with balances greater than $ 10 million.

Hodling enriches Cardano investors

Cardano’s rise in 2021 also led to an increase in the sum of its unspent transaction outputs, or UTXO.

In detail, UTXOs represent cryptocurrencies that remained unspent in your crypto wallets after deposit. Thus, if a blockchain network detects an increase in UTXO, it indicates that most wallets are holding the cryptocurrency rather than transferring it to other addresses, that is, a weaker sell sentiment.

CoinMetrics data obtained by Messari showed that Cardano’s UTXO count increased from 816,600 on January 1 to 2.85 million at the time of this writing. That illustrated an incredible spike in Cardano investor “holding” sentiment, something that could have worked as a brake on ADA’s 1,455% rally to date.

ADA UTXO count. Source: CoinMetrics, Messari

The decision to hold rather than sell ADA tokens found its clues in Cardano’s potential to unseat its main blockchain rival, Ethereum, as the latter experienced network congestion and higher transaction fee issues earlier this year. anus.

For example, ADA / USD increased 579% in the first quarter due to optimism around its Mary update, a protocol update that made Cardano a multi-asset blockchain. In doing so, the blockchain became compatible with host projects involved in emerging decentralized finance (DeFi) and the non-fungible token space.

The update, which went live on March 1, followed with another hard fork named Shelley in July. The new mainnet introduced the Proof-of-Stake (PoS) layer proposed by Cardano, allowing users to contribute to the transaction validation process either directly (by operating a stakeholder group) or indirectly (through delegation ) in exchange for participation rewards.

Cardano daily price chart. Source: TradingView.com

But despite strong fundamentals, ADA / USD rose just 19.21% during the second quarter, in part due to China’s clampdown on its regional cryptocurrency industry and anti-Bitcoin tweets from Tesla CEO Elon Musk. .

Related: Cardano Marks a Bearish Wedge as ADA Price Soars Over 100% in Q3

Nonetheless, the Cardano UTXO count continued to rise during the second quarter turmoil in the crypto market. It hit 2.93 million on July 26, when ADA changed hands for $ 1.25.

Smart contracts

The third quarter has seen Cardano finalize its plans to become an Ethereum-like smart contract platform through the so-called Alonzo upgrade. As a result, speculative offers for ADA, along with confused investor sentiment, have increased.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you should do your own research when making a decision.