U.Today - Recently, there has been a significant uptick in large transactions on the network, as the volume surged from approximately 70 billion to an impressive 180 billion . This remarkable 100 billion ADA spike has sparked curiosity about the reasons behind this sudden whale activity.
One of the primary driving forces behind this surge could be the fundamental growth of the Cardano network. Over the past few months, Cardano has made significant strides in enhancing its platform, fostering an environment conducive for the acceleration of large-scale transactions. Upgrades like the Alonzo hard fork, which introduced smart contracts capability to the network, may have driven the adoption of Cardano among large-scale investors, influencing the spike in transactions.
Source: Additionally, Cardano's growing ecosystem, characterized by a flurry of new releases and project launches, might be contributing to this surge. New dApps, NFT platforms and DeFi projects being built on Cardano's blockchain present an opportunity for large investors. They might be accumulating ADA in anticipation of using or supporting these new projects, which could explain the sudden increase in high-volume transactions.
Cardano has also recently become a breeding ground for meme coins. The launch of the first meme coin on the Cardano network, Hosky, inspired a rally within the meme coin community on . Given their infamous volatility, meme coins typically experience bursts of high-volume transactions, which could be contributing to the spike. Whale investors might be capitalizing on this trend, buying large amounts of ADA to invest in these new tokens.
Moreover, the spike could be an indication of whales believing in the long-term potential of Cardano. Amid the network upgrades and the expansion of Cardano's ecosystem, large investors might be positioning themselves for future growth, banking on Cardano's scientific philosophy and secure blockchain.