Shorting Cardano in February? Read these updates before you take a position
Cardano’s [ADA] price has rallied by more than 65% over the last month, which is commendable. But there was more to the story, as Santiment’s data revealed that Cardano sharks and whales were accumulating more ADA.
Addresses holding 100 thousand to 100 million ADA held the most in their combined wallets since 8 November 2022.
🐳 #Cardano's price is up +65% in 2023, and key shark & whale accumulating has had a lot to do with this. Addresses holding 100K to 100M $ADA now hold the most in their combined wallets since Nov. 8th. Today, $100k+ whale transactions hit a 12-week high. https://t.co/Od5c4Qw0qn pic.twitter.com/LmvmXnMZQe— Santiment (@santimentfeed) February 4, 2023
Though one of the main reasons behind whales’ trust in ADA remains the crypto’s massive gains in terms of its price, a few other factors might also be at play.
For instance, the projects that the Cardano developers are working on will help add much value to the blockchain in the coming days, which might have helped garner whale interest.
How has the ecosystem been?
The Cardano Foundation recently posted the latest edition of its weekly development report, which highlighted all the notable developments that happened in its ecosystem.
As per the latest data, Cardano’s native tokens reached 7.67 million, and the total number of projects launched was 116. The total number of transactions also registered an uptick as it exceeded 60 million.
See the full report for more details on what the IOG dev team has been up to and get the latest on our development progress.👇https://t.co/gOFIANY2Eh— Input Output (@InputOutputHK) February 3, 2023
On the development front, Cardano revealed that the developers worked on its upcoming Valentine (SECP) upgrade. While they were working on Valentine, Cardano also released a few other updates, including v.1.35.5, followed by Rosetta v.2.1.0.
The Plutus team continued working on the Plutus debugger, script capacity increase, and source code built-in documentation, whereas the Marlowe team added better error handling for CIP-30, and also improved the chain index by fixing the incorrect output index for a multi-asset output.
Metrics were supportive
The increased accumulation and network developments were accompanied by a few changes in ADA’s on-chain performance as well. ADA’s volume went up over the last week, as its price increased. This diminished the chances of a sudden price decline.
ADA also managed to increase its demand in the derivatives market as its Binance funding rate spiked in the last few days.
Cardano’s development activity also increased, as it ranked third on the list of top projects by average daily development activity on GitHub.
ADA’s 1-week price volatility, after registering a decline, went up, which suggested that ADA’s price might see a lot of fluctuation going forward.
At press time, ADA’s price had increased by more than 3% in the last seven days, and it was trading at $0.3998 with a market capitalization of over $13.8 billion.