Bitcoin
BTC$42 692.93

-2.10%

Ethereum
ETH$2 955.85

-4.21%

Cardano
ADA$2.16

-4.60%

Tether
USDT$1.000474

-0.01%

Binance Coin
BNB$337.66

-3.90%

XRP
XRP$0.924905

-2.55%

Number of Cardano millionaires rises by 173% after ADA price hits new highs


25 Aug 2021   #Cardano

The total number of Cardano wallets with a balance of at least $1 million has surged, from 3,625 on July 20 to 9,830 on Aug. 24. Cardano (ADA) addresses with a balance greater than $1 million have surged 173% during the latest ADA price rally. Specifically, the ADA/USD exchange rate gained almost 200% after bottoming out at $1.007 on July 20. The pair reached its record high of $3.02 in the previous session, a move that was followed by a 6.42% price correction to $2.73 at the time of writing.

Meanwhile, the same period saw the total number of Cardano wallets that hold at least $1 million worth of ADA tokens surge from 3,625 to 9,830, per information provided by data analytics platforms CoinMetrics and Messari.

Additionally, against ADA's 1,455% year-to-date (YTD) gains, the total number of Cardano millionaires surged from 504 to 9,830 — a 1,850% jump. That coincided with erratic spikes in Google Trends searches for the keyword "Cardano," signaling retail interest. Furthermore, the number of Cardano wallets holding more than $10 million worth of ADA tokens climbed from 504 on July 20 to almost 1,000. On Jan. 1, there were only 86 wallets with balances above $10 million.

Hodling makes Cardano investors rich 

ADA's rise in 2021 also led to a spike in the sum of its unspent transaction outputs, or UTXOs. UTXOs represent cryptocurrencies that have remained unspent in their crypto wallets after deposit. Therefore, if a blockchain network sees a rise in UTXOs, it indicates that most wallets are holding the cryptocurrency instead of transferring it to other addresses — i.e., a weaker selling sentiment.

CoinMetrics data fetched by Messari shows that Cardano's UTXO count surged from 816,600 on Jan. 1 to 2.85 million at the time of writing. That illustrates an incredible rise in Cardano investors' "hodling" sentiment, something that might have worked as a backstop to ADA's 1,455% YTD rally.

The decision to hold instead of selling ADA tokens found its cues in Cardano's potential to unseat its top blockchain rival, Ethereum, as the latter experienced problems with network congestion and higher transaction fees at the beginning of this year. For instance, ADA/USD surged 579% in the first quarter on optimism around its "Mary" upgrade, a protocol update that made Cardano a multi-asset blockchain. In doing so, the blockchain became compatible with host projects involved in the emerging decentralized finance (DeFi) and nonfungible tokens (NFTs) space.

The update, which went live on March 1, was followed up with another hard fork in July, called "Shelley." The new mainnet introduced Cardano’s proposed proof-of-stake layer, allowing users to contribute to the transaction validation process either directly (by operating a stake pool) or indirectly (via delegation) in exchange for staking rewards.

But despite solid fundamentals, ADA/USD surged a mere 19.21% during the second quarter, partly due to China's crackdown on its regional cryptocurrency industry and Tesla CEO Elon Musk's anti-Bitcoin (BTC) tweets. Nonetheless, the Cardano UTXO count kept surging during the second quarter's turbulence in the crypto market. It topped out at 2.93 million on July 26, when ADA was changing hands for $1.25.

The third quarter has witnessed Cardano finalizing its plans to become a smart contract platform similar to Ethereum via its so-called "Alonzo" upgrade. As a result, speculative bids for ADA, alongside investors' hodling sentiment, have surged.


Related

Cardano to enable new DeFi stablecoin with Coti
ADA price drops 10% following Cardano’s long-awaited smart contracts rollout
Cardano launches smart contracts after successful hard fork
ADA price hits $3 for the first time as Cardano, Ethereum lead crypto super bull cycle
Cardano price eyes $3, but ADA chart fractal hints at a potential 40% correction
Bullish cup and handle pattern sets Cardano (ADA) price up for a new ATH
Cardano price is hot, but data shows pro investors haven't warmed up yet
Cardano leads tepid crypto market recovery ahead of Memorial Day
Bitcoin price gains 40% in a day as altcoins, Cardano and Dogecoin join $42K BTC

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 78.8% 36 $42 692.93 -2.10% -1.96% $803 819 282 603 $30 748 553 485
2 Ethereum (ETH) ETH Ethereum predictions 73.2% 51 $2 955.85 -4.21% -2.12% $347 903 077 176 $19 101 897 139
3 Cardano (ADA) ADA Cardano predictions 63.2% 75 $2.16 -4.60% 4.25% $69 295 841 075 $3 084 135 333
4 Tether (USDT) USDT Tether predictions 92.8% 1 $1.000474 -0.01% 0.05% $68 575 451 500 $70 240 814 218
5 Binance Coin (BNB) BNB Binance Coin predictions 65.2% 65 $337.66 -3.90% -7.26% $56 773 744 460 $1 538 043 078
6 XRP (XRP) XRP XRP predictions 72.8% 49 $0.924905 -2.55% 0.68% $43 209 372 694 $2 970 626 231
7 Solana (SOL) SOL Solana predictions 67.6% 66 $138.70 0.05% 0.31% $41 252 366 694 $2 837 656 739
8 USD Coin (USDC) USDC USD Coin predictions 95.2% 1 $1.000334 0.01% -0.01% $31 130 094 542 $3 148 284 594
9 Polkadot (DOT) DOT Polkadot predictions 68.8% 69 $27.73 -5.72% -2.87% $27 388 621 521 $1 694 336 627
10 Dogecoin (DOGE) DOGE Dogecoin predictions 66.8% 70 $0.200964 -3.44% -4.38% $26 418 834 354 $858 880 050
11 Terra (LUNA) LUNA Terra predictions 68% 60 $37.85 6.16% 36.72% $15 139 928 160 $1 669 613 943
12 Avalanche (AVAX) AVAX Avalanche predictions 60.4% 84 $67.15 -0.78% 13.01% $14 791 554 871 $1 240 824 478
13 UniSwap (UNI) UNI UniSwap predictions 67.6% 70 $22.37 -7.77% 5.86% $13 679 594 706 $1 145 133 068
14 Binance USD (BUSD) BUSD Binance USD predictions 94.8% 1 $1.000184 0% 0.01% $13 517 674 906 $5 035 296 123
15 Chainlink (LINK) LINK Chainlink predictions 64.8% 70 $23.21 -6.39% -2.06% $10 559 720 262 $1 106 271 150

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.