From 3,625 on July 20 to 9,830 on August 24, the total number of Cardano wallets having a balance of at least $1 million has increased dramatically.
During the most recent ADA price spike, Cardano (ADA) addresses with a balance of more than $1 million had risen 173 percent.
After bottoming out at $1.007 on July 20, the ADA/USD exchange rate climbed about 200 percent.
In the previous session, the pair hit a new high of $3.02, which was followed by a 6.42 percent price drop to $2.73 at the time of writing.
According to data analytics platforms CoinMetrics and Messari, the total number of Cardano wallets holding at least $1 million worth of ADA tokens increased from 3,625 to 9,830 during the same time period.
In addition, despite ADA’s 1,455 percent year-to-date (YTD) gains, the overall number of Cardano millionaires increased by 1,850 percent, from 504 to 9,830.
This was accompanied by sporadic increases in Google Trends searches for the term “Cardano,” indicating retail interest.
In addition, the number of Cardano wallets holding more than $10 million in ADA tokens has increased from 504 on July 20 to nearly 1,000.
Only 86 wallets had balances of more than $10 million on January 1st.
Cardano investors make a lot of money via hodling.
The growth of ADA in 2021 coincided with a rise in the total amount of unspent transaction outputs, or UTXOs.
After being deposited, UTXOs represent coins that have remained unspent in their crypto wallets.
As a result, a growth in UTXOs on a blockchain network implies that most wallets are retaining the coin rather than sending it to other addresses, indicating a weaker selling mood.
Cardano’s UTXO count has risen from 816,600 on January 1 to 2.85 million at the time of writing, according to CoinMetrics data obtained by Messari.
This demonstrates a massive increase in “hodling” sentiment among Cardano investors, which may have acted as a backstop to ADA’s 1,455 percent YTD surge.
Cardano’s ability to dethrone its major blockchain rival, Ethereum, was a factor in the choice to hold rather than sell ADA tokens, as the latter encountered network congestion and higher transaction costs at the start of this year.
For example, in the first quarter, ADA/USD soared 579 percent on anticipation of the “Mary” upgrade, a protocol change that turned Cardano into a multi-asset blockchain.
The blockchain became compatible with host projects in the growing decentralized finance (DeFi) and nonfungible tokens (NFTs) area as a result of this.
The update, which went live on March 1, was followed by a hard fork called “Shelley” in July.
Cardano’s proposed proof-of-stake layer was added on the new mainnet, allowing users to participate in the transaction validation process directly (by maintaining a stake pool) or indirectly (through delegation) in exchange for staking incentives.
Despite the strong fundamentals, the ADA/USD pair only rose 19.21% in the second quarter, owing in part to China’s crackdown on the regional cryptocurrency industry and Tesla CEO Elon Musk’s anti-Bitcoin (BTC) statements.
Despite the instability in the crypto market in the second quarter, the Cardano UTXO count continued to rise.
It reached a high of 2.93 million on July 26, when ADA was sold for $1.25.
Contracts that are smart
Through its so-called “Alonzo” upgrade, Cardano has completed its goal to become a smart contract platform akin to Ethereum in the third quarter.
As a result, speculative bids for ADA have risen in tandem with investors’ cautious sentiment.
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