Cardano (ADA), currently the 10th-largest cryptocurrency by market cap, is experiencing a surge in large holder inflows, an indicator that tracks the flow of funds into the addresses of large holders, or whales.
According to IntoTheBlock, ADA has seen a 1,218% increase in large holder inflows, which was the result of a sharp increase in funds flowing into whale addresses from 14.51 million ADA on July 8 to 110.7 million ADA on July 9. This increase came after ADA had seen a decline in inflows for several days starting on July 5.
An influx of large holders may indicate that there is significant buying activity. This is true because many of these addresses are buying on centralized exchanges and then moving their purchases into cold storage.
Sharp spikes in inflows from large holders can also indicate a price bottom, as these addresses tend to buy in bulk after significant drops.
Both scenarios could be possible for ADA given the current market situation. The cryptocurrency market has seen volatility in recent weeks, with ADA falling to lows last seen in November 2023.
Currently, the ADA price is showing signs of stability, up 3.4% in the last 24 hours to $0.3819. While the surge in large holders’ inflows may indicate that something is brewing for Cardano, it is also important to keep in mind that large organizations may be transferring the funds they receive for business purposes.
Cardano Moves Towards Chang Upgrade
Cardano is moving towards the long-awaited Chang update with the release of Cardano Node 9.0.0.
The Chang update will gradually release governance functionality, making it easier for those with new or additional governance roles to adopt and adapt. It is divided into two phases.
Chang Upgrade 1 will add governance features to Cardano and begin the technical boot phase as described in the CIP-1694 boot phase. Chang Upgrade 2 takes CIP-1694 out of the technical boot phase and enables the latest governance features on-chain, including DRep participation and all governance activities.
