Popular smart contract platform Cardano ($ADA) and meem-inspired cryptocurrency Shiba Inu ($SHIB) have both seen the number of large whale transactions on their networks surge, in a move that has been “historically associated with price shifts.”
According to on-chain analytics firm Santiment, both Cardano, Shiba In, and the controversial $HEX token have seen “big spikes in large whale transactions,” with transactions over $100,000 spiking to highs last seen months ago for all three digital assets.
🐳 Three of the more polarizing assets in #crypto, #Cardano, #ShibaInu, and #Hex, are seeing big spikes in large whale transactions. When $100k+ transactions spike on a network, it historically is associated with upcoming price shifts. Monitor closely. 👀 https://t.co/KG0mTWH11y pic.twitter.com/PHI9NOaxbn— Santiment (@santimentfeed) February 5, 2023
These large whale transactions are occurring amid a wider cryptocurrency market recovery, with the flagship cryptocurrency Bitcoin ($BTC) seeing its best January in a decade after rising over 40% in just a month.
Santiment has noted in a separate tweet that the number of whales on the Cardano network has “notably broken out,” as addresses holdings between 1 million and 100 million tokens have grown by 36 since the beginning of the year while transactions of over $100,000 have also grown.
🐳 #Cardano whale numbers have risen in 2023, and large transactions have notably broken out. The last time there were this many $100k+ $ADA transactions was in May, & its price jumped +36% from the beginning of that week until its local top in early June. https://t.co/GTuBl9DKWA pic.twitter.com/9GSnMqlomB— Santiment (@santimentfeed) February 7, 2023
As CryptoGlobe reported, the total value locked on Cardano’s decentralized finance space has more than doubled so far this year, to the point there are now over $100 million worth of $ADA locked on DeFi protocols on the network.
The total value locked on the Cardano network started 2023 at around $49 million, and has since surged to now be close to the $104 million mark. The rise can be partly attributed to Cardano’s price appreciation, as the cryptocurrency moved from around $0.25 at the beginning of the year to roughly $0.39 at the time of writing.
The amount of locked $ADA on the network exploded shortly after the launch of the Cardano-powered algorithmic stablecoin Djed ($DJED), which is a formally verified algorithmic stablecoin for Cardano that is backed by cryptocurrency.
IOG, the company behind the development of Cardano, designed the stablecoin, while COTI Group is responsible for issuing it. The stablecoin was announced back in September 2021, and launched earlier this month.
As for Shiba Inu, the cryptocurrency has been seeing heavy accumulation among Ethereum ($ETH) whales, with the 5,000 largest now holdings a massive number of SHIB tokens, valued at $708,456,318. This impressive figure places SHIB as the largest non-ETH holding among Ethereum whales.