A recent on-chain data analysis of the Cardano network revealed that 10% of the biggest investors hold around 94% of the total circulatory supply of ADA. Noted by an independent crypto market analytics Coin Metrics, the top Cardano whales seem to account for the majority supply of its token around 33.43 billion.
The report further explained that ADA reserves in the top addresses since the 2021 year start have increased by 10%. In the first month of 2021, there were only 30 billion ADA accumulated by these investors. However, at the end of 2021, the number increased by 1 billion more tokens showing a 3% year-to-date increase.
According to the metrics issued by the Coin Metrics on-chain analysis, the trading volume hosted by the Cardano network has kept increasing since the start of the year. Furthermore, the top altcoin native blockchains that have been able to get the top 3 ranks on account of top trading volume are Cardano, Polkadot, and Solana networks. The same data is also corroborated by Sentiment data projections.
After the addition of smart contracts capability on the Cardano network this year, the number of DeFi and dApps projects on the network started to gain a lot of traction on the ecosystem. Market experts claim that an increase in the utility of the network can be a direct cause of making the demand for its native token higher in the broader cryptocurrency market.
Grayscale is one of the largest cryptocurrency trust operators in the world. The network recently looked into the Cardano network for creating a new trust with the native token ADA. The report published on the matter by Grayscale experts claims that the ADA is possibly undervalued and overshadowed by projects like Ethereum.
The same crypto analytics service also reported earlier this year that 99% of the total circulatory supply of Bitcoin was also under the control of the top 10 whale wallets. For both Cardano and Bitcoin, the new findings have put their status as an independent and truly decentralized investment vehicle has been put to question.