Cardano’s “swollen” wallets should get ADA investors to follow — and here’s why

  • Cardano reported a 55% increase in portfolios as more investors continue to choose decentralized projects
  • Long and short ADA positions remain in similar positions with significant declines

According to data from Cardano Blockchain Insights, wallets are in play Cardano [ADA] Grid was down nearly four million. This achievement means that the Proof-of-Stake (PoS) blockchain was able to record more than 55% growth in the last year.

At the time of writing, the ADA Network has 3,753,590 wallets. This number undoubtedly showed that Cardano has recorded explosive growth despite the unstable market conditions.

According to the ADA ecosystem tracker, more than 100,000 wallets have been brought on board the blockchain since the beginning of November.

Source: Cardano Blockchain Insights

Read Cardano price prediction for 2023-2024

This large increase in portfolios may not be related to the downfall of FTX, especially since investors have vowed to move to decentralized exchanges. Since the Cardano network was essentially decentralized, the increase likely represented a “vote of confidence” in the project.

HODLing in the long run doesn’t justify anything yet

Despite the hike, long-term ADA holders were still there Sharp pain. This was because the Market Value Realized Value Ratio (MVRV) signaled a huge loss for ADA supporters. According to Santiment, the 365-day MVRV was -52.14%.

Although the 30-day period was no better, it did indicate that investors with ADA in their portfolios were far from doubling the value of their assets.

In fact, the drop in value reflects another turn to the downside rather than a major respite. As for the z score, the ADA was at -1,238 points. He noted that ADA is undervalued at the current location, and that the current value could provide a moment for investors to accumulate.

However, this does not guarantee that ADA will not fall further, even though it is down 89.78% from its all-time high.

Cardano's MVRV ratio and MVRV z-Score

Source: feeling

Do you help the governor?

Cardano has also seen a slight increase in transaction participation as the number of wallets increases. Santiment based detection, the number of active ADA addresses over the 24-hour period increased to 72,400. The number of 7-days also showed an increase to 347,000. This means that the wallets created are not just registered in the dormant state. Instead, they actively participated in and contributed deposits to the Cardano network.

However, the circumstance contrasts with the case of ADA trading. At press time, one-day ADA distribution has fallen from 287.56 million to 112.48 million.

With a reduction of more than 100%, it is suggested that a unique number of ADA symbols that were traded during the period were not significant. Therefore, short-term traders were hardly trading the token. However, this does not mean a decrease in interest.

Cardano trading and active addresses

Source: feeling

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