- Cardano whales are accumulating ADA tokens after the launch of Layer 2 scaling solution Hydra.
- The blockchain’s large wallet investors have added more than 100 million ADA tokens to their portfolio in the past week.
Cardano whales continue to accumulate ADA as Layer 2 scaling solution Hydra goes live Cardano, the blockchain platform and cryptocurrency, has seen its largest wallet investors, known as whales, accumulate more than 100 million ADA tokens in the past week. The accumulation of ADA tokens by whales has been attributed to the launch of the blockchain’s Layer 2 scaling solution Hydra, which has fueled bullish sentiment among ADA holders.
Hydra’s Potential for Cardano
Hydra is a Layer 2 protocol that operates on the Cardano blockchain and is designed to improve the blockchain’s transaction throughput and overall efficiency. The protocol enables parallel processing of transactions and boosts the overall capacity of Cardano’s blockchain. With the launch of Hydra, the whales are anticipating a recovery in ADA’s price. The last time whales in this segment accumulated ADA tokens, there was an increase in the altcoin’s price.
Cardano’s Year-to-Date Performance
Cardano’s YTD performance in 2023 is the fourth-best in the crypto ecosystem after Solana, Bitcoin, and Ethereum. Interestingly, the blockchain recorded 65 million transactions in April 2023 as its network continued to grow. The whales’ activity signals their bullish sentiment on ADA and the likelihood of Cardano’s recovery from its sideways price trend.
ADA’s Current Price Trend
Currently, ADA is trading sideways and is eyeing resistance at $0.40 to begin its price recovery. However, the accumulation of ADA tokens by whales is a positive sign that the altcoin’s price may soon rise.
The accumulation of ADA tokens by whales is a clear indication of their confidence in the blockchain’s future and its Layer 2 scaling solution Hydra. With the launch of Hydra, Cardano’s transaction throughput and overall efficiency are expected to improve, which could act as a bullish catalyst for the altcoin’s price. The whales’ activity also signals the likelihood of Cardano’s recovery from its current sideways price trend.