Despite the crypto market’s bloodshed, in the past few days, the Cardano (ADA) trading activity has been relentless, and its holders’ balance remains strong with a multi-year high.
Get Into The Block dataThis indicates that on February 23, the long-term Cardano holder’s wallet balance reached a multi-year peak.
“Regardless of the price action, Cardano‘s holders remain strong. The balance held by HODLERS- addresses holding >1 year, is at a multi-year high. This HOLDERS has increased its position to 10.12b $ADA, the largest balance since December 11, 2019.”
Despite the geopolitical tension causing the altcoin’s price to drop dramatically, traders have increased their position of Cardano.
Since December 2019, holders have accumulated the largest ADA balance. Cardano’s network recent developments might be serving as fuel to its supporters, and as a consequence, many believe its price will climb.
“Every bounce is still getting sold off, waiting for a final leg down before a reversal. Would consider buying this at 0.50,” an analyst noted.
A Finder’s poll indicated several analysts believe the price of ADA will reach $58 by 2030, and a few thought it might close this year at $2.72, a 160% increase. Many traders viewed the $58 forecast as exaggerated unless Cardano’s ecosystem explodes in the coming years.
The altcoin was also a favorite of Vanessa Harris, an expert. It will close in 2022 at $3. She also believes its slow growth, which has been criticized by many countries could be a boon as more nations look towards the altcoin.
“It is one of the few smart contract platforms that have placed security, correctness [and] decentralization at their core, backed by formal methods and peer-reviewed research… While this means Cardano moves more deliberately in the short term, long term this resilience should support adoption by nation-states and non-governmental organizations. We are already seeing this adoption happen in Ethiopia and Tanzania.”
However, other experts remained bearish and cited “lack of execution and poor technology” and alleged that “They have failed on their promise of delivery for the last several years.” But however slow, the expansion of its DeFi ecosystem is starting to happen and might support the loyal holders’ sentiment.
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Cardano DeFi Expansion
Cardano transactions and volumes are increasing as developers work to create the first dApps solution and DeFi is expected to expand. The cardano transaction volumes have surpassed Ethereum’s on-chain activity, ranking it 2nd in 24-hour volume.
The decentralized exchange SundaeSwap (an Automated Market Maker DEX) was launched in the first quarter of this year. It has been well-received by users. Congestion caused it to crash at first. However, after some adjustments made by IOHK to block size, the transactions are now running smoothly and SundaeSwap reports a total value locked of $21million.
Cardano is attracted by NFTs due to their boom. Soon, the Arcadex decentralized exchange platform will be available on Cardano. The enthusiasm has been high for the provision of a variety DeFi services via both NFT and DEX marketplaces.
Cardano continues to gain traction despite the slower-than-expected growth rate and six month downtrend. Cardano holders have not given up. Cardano has a roadmap that aims to improve scalability and more growth.
Related Reading| Bitrue Announces Support For Cardano (ADA) As Base Pair On Exchange
Price of ADA
At the time of writing, Ada is down to $0.83, shedding around 0.72% over the past 24 hours.
