The value of ADA, the cryptocurrency powering Ethereum’s (ETH) rival blockchain Cardano, hits a four-month high as on-chain activity indicates a major contribution by whales and a boom in decentralized finance (DeFi) projects on the network.
On November 5, the ADA token surged by 7.5% to reach $0.348, its highest level in 120 days. The rally was marked by the annual Cardano Summit, which took place from November 2 to 4, creating much-needed enthusiasm and confidence in the Cardano ecosystem.
ADA Prices Surge 33% in 14 Days Following Increased Whale Accumulation
According to data provided by blockchain analytics platform Santiment, ADA prices shot up by 33% in the last 14 days, a feat that was accompanied by a 9% growth in the cryptocurrency’s overall market capitalization.
Santiment also provided significant data that revealed a substantial rise in whale activity on the Cardano network, with more than 1,740 ADA transactions valued at over $1 million taking place on Saturday, November 4. This was an indicator suggesting a robust buying sentiment among ADA’s most significant holders, which also helped reinforce the bullish trend.
Around the same time, CoinGecko noted an improvement in ADA’s monthly price movement, with the token experiencing a 30.1% uptick. The upward trend could be the result of increased demand and attention that Cardano had received in the past week.
Increased involvement of whale investors and thriving DeFi activities in the crypto sector have played a significant role in boosting Cardano as there is increased investor confidence in the blockchain’s potential.
Improved DeFi Activity on the Cardano Blockchain also Attributed to ADA Price Hike
A report by on-chain data aggregator DefiLlama showed that the total value locked (TVL) on Cardano surged to $235 million, marking a remarkable 39% increase over the past 30 days. The surge highlighted the growing utilization of Cardano-based platforms in the DeFi space.
Additionally, four of Cardano’s most prominent DeFi projects – Minswap, Indigo, Liqwid, and Optim Finance – have all recorded significant growth in the past four weeks, coinciding with the surge in ADA’s price, which further validates its positive momentum in the market.
The price surge was also accompanied by a decrease in Cardano’s daily active addresses, suggesting a solid buying sentiment among its largest holders, aka whales.
Historically, November has been a fruitful month for Cardano and ADA as it happens to be the time when the Cardano Summit takes place every year. Since 2017, ADA has returned an average of 44% in value. The historical price performance of Cardano bodes well for its outlook in relation to the latest price surge.
Recently, ADA’s price surpassed the 200-day Exponential Moving Average (EMA) – a technical indicator that tracks the price of an asset over time, giving more weight to recent price data. This alignment of technical factors indicates rising demand for ADA and reinforces its positive future outlook.
Cardano Surge Marked by Developments Related to Bitcoin Spot ETFs
ADA’s surge also aligns with a border market recovery that began on October 19 with the news of the reapplication of crypto asset manager Grayscale’s spot Bitcoin exchange-traded fund (ETF). On that day, the US Court of Appeals DC Circuit ordered the Securities and Exchange Commission (SEC) to verify the company’s Bitcoin ETF listing.
The following week, the ticker symbol of investment giant BlackRock’s highly-anticipated iShares Spot Bitcoin ETF (IBTC) appeared on the securities eligibility list of the Depository and Trust Clearing Corporation (DTCC). The event was marked by Bitcoin (BTC) reaching its highest valuation in over a year, also accompanied by a surge across the crypto market. The market expects the SEC to approve the United States’ first batch of spot Bitcoin ETFs by January 2024.
Since then, the price of ADA has experienced a remarkable increase of 40%. At the time of writing, Cardano (ADA) is trading at $0.35 – up 4.2% from the previous day’s price. In the meantime, ADA had a 24-hour trading volume of $332.59 million.