Cardano Whale Traders Still Optimistic, Purchase Over $18 Billion Worth of ADA In 7 Days Amid Price Dip

Whales are still optimistic that ADA prices will surge. 

Cardano (ADA) has not brought smiles to the faces of enthusiasts who have expected positive price actions following the Alonzo upgrade that ushered in smart contract functionality in September 2021.

However, contrary to Cardano investors’ expectations, the cryptocurrency has performed badly from its price of over $2 during the time the smart contract feature was introduced.

Many ADA Holders in Losses

ADA, which opened the year around $1.3, has fallen sharply below $1 on numerous occasions. At the time of writing, ADA is changing hands around $0.839 and it is down 0.6% in the last 24 hours, according to data on cryptocurrency aggregator platform Coingecko.

Data from cryptocurrency data provider IntoTheBlock paints a perfect picture of how bad the massive price dip has affected ADA investors.

Per the data, of the total ADA holders, 88% are currently in losses, while only 9% of Cardano investors are in profit. Still, on IntoTheBlock data, only 3% are at breakeven, meaning they are neither in profit nor loss.

With Cardano’s slump in value from what was recorded in January 2022, the ninth-largest cryptocurrency by market capitalization will need to soar over 50% to hit the price recorded at the beginning of the year.

Whales Still Buying ADA

Despite the bearish price of Cardano, investors should not lose hope as there seems to be a lot of potential associated with the cryptocurrency.

Many investors, especially whales, are confident that ADA will surge in the near future as they have continued to increase their position in the asset class.

IntoTheBlock data shows that over the last seven days, Cardano whale traders have purchased a combined $18.07 worth of ADA, with none of the transactions less than $100,000.

Traders Optimistic About Hydra Upgrade

The reason Cardano whales are adding a huge amount of ADA is that more decentralized applications (dApps) are expected to be deployed on the network when the Hydra upgrade is implemented by late June this year.

If the Hydra upgrade goes live more ADA will be staked across various protocols, which will cause the price of the cryptocurrency to soar.

At press time, Cardano’s total value locked (TVL) is currently around $200 million, data on DefiLlama shows.

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