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ADA Whales Accumulate as Staking on Cardano Surges
- Cardano’s ADA, with 63% of its supply staked, ranks third in Staking Market Cap, contributing to a 36% surge since mid-October.
- Cardano “whales” bought 80 million ADA worth about US $28 million, spurring a price surge alongside a spike in social and investor interest from the Cardano Summit.
- Emurgo envisions a long-term future for Cardano, aiming for a blockchain lifespan of 30-50 years and real-world adoption through infrastructure development and national-level projects.
Staking in Numbers
Cardano’s ADA has seen a significant price rise in the past few weeks going from US $0.24 (AUD $0.38) in late October to US $0.35 (AUD $0.55) at the time of writing. As seen in the chart below, this uptrend can be attributed to some extent to a heightened interest in staking the native token, which offers rewards to investors.
Currently, Cardano holds the position as the third-largest by Staking Market Cap, with US $8.06 billion (AU $12.54 billion) worth of ADA staked on its network. Out of the total ADA supply, 63% is locked in staking, with validators looking to earn an annual reward of 3%.
Whales Accumulate
In late October, ADA witnessed a significant surge in buying activity, with “whales” purchasing 80 million ADA, valued at around US $28 million (AUD $43.5 million), triggering a price breakout above key resistance levels.
On-chain data from Santiment showed that wallets with holdings of 1 million to 100 million ADA increased their cumulative holdings by 80 million ADA over 10 days. This accumulation coincided with a high-profile Cardano Summit in Dubai, which boosted social media and investor interest in ADA. The social engagement and whale transactions reached a 3-month peak, contributing to a 9% increase in market cap over 24 hours and a 36% rise over two weeks.
Long-term Visions for Cardano
Speaking at the Cardano Summit, Amar Singh from Emurgo predicts that Cardano will emerge from a period of perceived dormancy due to the project’s slow, scientific, and methodical approach to blockchain development. This approach, which has been both appreciated for its rigour and criticised for its pace, is expected to yield results in the long-term sustainability of the blockchain, aiming for a lifespan of 30 to 50 years rather than the short term.
The founders didn’t want to make a Blockchain for the next three to five years. They want to make a Blockchain for the next 30 to 50 years.
Amar Singh, Emurgo Emurgo, as the commercial arm of Cardano, plans to facilitate real-world adoption by creating infrastructure, fostering commercial integration, and establishing connections between institutions and Cardano’s blockchain. Emurgo’s focus is also on initiating national-level blockchain projects, particularly in developing regions, to demonstrate the practical applications of Cardano’s technology.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
