State of Cardano

It's hard to find more polarizing opinions in crypto than the ones we see about Cardano. The 8th largest asset in crypto by market cap has gone through its trials and tribulations as a large cap asset over the past couple of years.

After its price dropped -82% in 2022, much of the optimism dropped from even the loudest Cardano supporters. But now jumping back up +45% in 2023 has some jumping back on the bandwagon.

Let's take a look at some of ADA's key metrics, and investigate its upside (and downside) in terms of where the asset stands now:

Good Sign: Whale Transactions

The amount of whale transactions happening on the ADA has seen a massive since the start of February. There is suddenly an average of approximately 1,700 transaction per day valued at $100k or more. This is an enormous uptick from the approximate 300 $100k+ transactions per day that were happening throughout January.

Good Sign: Whale & Shark Accumulation

Since the FTX collapse on November 9th, whale and shark addresses holding 10k to 10m ADA have accumulated 659.53M ADA, which equates to $235.5M. This turnaround coming from the key stakeholders of Cardano is a nice sign.

Good Sign: Average Trader Returns in Negative

Generally, you want to enter into positions when there is "blood in the streets". And based on both the two-week price correction, as well as the 2022 drop that ADA still hasn't come close to being made up for, there is a lower risk in buying in now vs. an average time in Cardano's history.

Bad Sign: Dormant Coins Continue Sitting

According to Santiment's Mean Dollar Invested Age metric, the heavy investments in coins on the Cardano network continue to sit without doing a whole lot of moving. Six months ago, the average amount of time coins sat in an address was 267 days. That number has ballooned to 407 days, as circulation continues to struggle.

Bad Sign: Daily Active Addresses Sinking

We saw some very encouraging rises in the amount of unique daily addresses interacting on the ADA network. But after seeing 85,000 addresses moving Cardano on a daily basis back in November, the number has sunk to about 62,000 addresses per day now.

Right now, it does look like there is more to be excited about than bad on the Cardano front. Not pictured is the fact that trader sentiment toward ADA is slightly negative right now, which is another good sign that a price burst can blindside the jaded community. But nevertheless, we want to continue monitoring this huge surge in whale activity and make sure Bitcoin stays propped up for Cardano to flourish!

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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.