Around 31 billion ADAs would get housed in the 10% of the wallets with the most capitalized funds, which would reveal a high concentration of the Cardano coin in the hands of just a few investors.
An article revealed by the Finbold portal highlights that 94% of the current circulating supply of Cardano ADA tokens would be in the hands of crypto whales.
As such, research conducted by Finbold’s team with data from Blockchain analytics firm CoinMetrics revealed that at least a total of 31 billion ADAs, valued at $ 37.8 billion at press time, would be in the hands of 10% of the whales that work on the Cardano ecosystem. This figure reflects that on December 13, there were just over 33,428 million circulating tokens.
The figures highlight that the concentration of ADA in crypto whale portfolios started to grow steadily since the beginning of 2021. Therefore, these addresses have been increasing their supply of tokens throughout the year.
Hoarding Instead of Selling
Regarding the whales in question, the report highlights that these directions would dedicate themselves to gathering ADA, which they have been doing throughout this year amid the constant advances that the development team has been making.
A few months ago, the network officially gave support for smart contracts. Along with this situation, the arrival of many use cases that take advantage of the benefits offered by its Blockchain network became a highlight.
One of the most expected announcements by Cardano enthusiasts is the arrival of DeFi platforms to their current network. One of the contenders already taking steps in this matter is SundaeSwap, which has already launched its public testnet and might be ready in the coming weeks for operations with all the laws.
It is precisely these expectations that reinforce the thesis behind the interest of whales to accumulate more ADA throughout 2021 since the DeFi ecosystem, in general, has been having great success in different networks such as Binance Smart Chain, Solana, and Avalanche.
However, other reports showed that the already existing expectations around Cardano are also present on other Blockchain projects. Especially those expectations that pose good scenarios for sectors such as DeFi and NFTs, which is why the projects, including Polkadot, seem to be in the focus of interest for many investors and developers because of all the possibilities they pose for the future.
Cardano Undervalued
With networks like Avalanche and Solana on the headlines of many reports these days, various investigative agencies also highlight that Cardano could get undervalued in the face of the impact it could have in the coming years.
This thesis receives supportive stances from a study published by Grayscale. This study highlights that the network has a lot to offer and can operationally surpass what Ethereum currently has in hand, the network that concentrates the bulk of Blockchain activity today.
When it comes to prices, although the digital currency faces a value of USD 1.22, its value increased by more than 590% at the beginning of the year. On the other hand, it reached highs above USD 3, becoming one of the best-valued assets at the time.
By: Jenson Nuñez
