U.Today - The percentage of supply controlled by whales has dramatically decreased, reaching around 8% of the total supply. Compared to similar cryptocurrencies, this figure is significantly lower, making ADA one of the most decentralized digital assets in the top 10 market (excluding stablecoins). Despite these promising developments in decentralization and the use of cutting-edge technology, Cardano faces market challenges, struggling to regain its recent uptrend.
The decrease in whale-controlled ADA supply reflects a shift in the asset's distribution among holders, which contributes to a more decentralized network. As the distribution of becomes more dispersed, the cryptocurrency is likely to become more resistant to manipulation and maintain a healthy, diverse ecosystem of stakeholders.
Source: Unfortunately, Cardano's progress in decentralization and innovative technologies has not translated into a clear market advantage. After enjoying an uptrend for several weeks, ADA is now struggling to regain momentum. The volume profile reveals a downtrend, which could have been interpreted as a sign of a potential reversal.
One possible explanation for ADA's market struggles could be the broader cryptocurrency market's recent volatility. With many digital assets experiencing corrections and fluctuations, it is not surprising that Cardano's performance has been affected. Additionally, some investors may still be skeptical about the long-term viability of Cardano's technology, mostly due to the project's academic approach in implementing newly emerged solutions.
It is important to note that while Cardano's current market challenges may be concerning for some investors, the project's core principles of decentralization and innovation remain strong. As the cryptocurrency space continues to evolve and mature, Cardano's dedication to creating a more inclusive financial system may prove to be a valuable asset in the long run.