Cardano (ADA) has recently seen a significant rise in market cap. Blockchain analytics firm Santiment reported a 9% increase in ADA’s market capitalization over the past day, which adds to a rise of more than 20% over the past two weeks.
This growth spurt in valuation corresponds with increasing activity on the Cardano network, specifically among large holders, who are commonly referred to as “whales.”
Cardano On-Chain data indicates bullish behavior for ADA
Prior to this recent surge in value, several on-chain metrics indicated a potential short-term increase in the price of ADA. Santiment’s analysis indicated that two key indicators – processing activity and whale transactions – had risen to levels not seen in three months.
This type of cross-chain behavior often precedes market movements, attracting the attention of investors and analysts alike.
Digging into Cardano blockchain data, there has been a 23% spike in address activity over the past three weeks, according to Santiment, indicating a growing use case or increase in speculation about the future of the altcoin.
At the same time, whale transactions, which are large ADA transfers that often signal moves by wealthy investors, rose more than 32%. Such significant transactions can significantly impact market sentiment, potentially resulting in price volatility or, in this case, an uptrend for ADA.
📈 #Cardano It was the big story on Thursday, with the market cap up 9% over the past 24 hours and now 36% over two weeks. As usual, #onchain The activity indicated this #rising work with $ada Processing activity and whale transactions are at their highest levels in more than 3 months.… pic.twitter.com/IYBBk3ssf4
— Santiment (@santimentfeed) November 2, 2023
Latest price action from ADA: Market up more than 10%
Meanwhile, in a development in line with market expectations, the price of ADA has maintained an upward trend in recent weeks. In contrast, the altcoin’s market capitalization has reflected this positive momentum, inflating by approximately 11.4% in the past week and by approximately 30% in the past two weeks.
Significantly, ADA’s market cap crossed the $11 billion mark, up from the previous monthly low of around $9 billion. This rise in market cap has brought ADA to a trading price of $0.32 right now, representing an increase of nearly 5% in just the last 24 hours.
Adding to the upbeat market sentiment, ADA’s daily trading volumes witnessed a significant increase. Trading volume last Friday reached about $214 million, and there was noticeable inflation, as the number rose to nearly $500 million last day.
This enhanced trading activity, coupled with market capitalization growth, indicates strong investor interest in ADA, which may indicate broader market confidence in the altcoin’s prospects.
Featured image from Unsplash, chart from TradingView