- Volume and Share of Long-Term ADA Holders
- Impact on the Cardano Network
- Expectations for the Upcoming Hard Fork
Cardano, the 10th largest cryptocurrency by market capitalization, has achieved a major milestone, unrelated to ADA's price. The percentage of ADA held by long-term holders has reached an all-time high, accounting for nearly 40% of the total supply.
Volume and Share of Long-Term ADA Holders
According to data from IntoTheBlock, 72% of ADA holders are classified as hodlers, having held their ADA for over a year. Twenty-five percent are cruisers, referring to addresses with a holding period between one and twelve months, and 3% are traders having held their ADA for less than one month. Hodlers refer to long-term investors; cruisers are mid-term or so-called swing traders, while traders are short-term speculators.
Impact on the Cardano Network
Increasing new use cases across the Cardano blockchain likely played a key role in the sustained growth of hodlers, as these long-term addresses may want to keep their holdings to benefit from these applications. Analysis by IntoTheBlock indicates that Cardano settles around $7.2 billion daily in on-chain volume, outperforming several other networks, leading to an exceptionally low NVT ratio of just 2.62, which may suggest that ADA is undervalued.
Expectations for the Upcoming Hard Fork
Expectations are in place for the Chang #1 hard fork, which will introduce governance to Cardano. According to an Aug. 12 update shared by Intersect, great progress has been made by stake pool operators, with 67% of SPOs having upgraded to v9.1.0. The hard fork threshold for SPOs is now closer to being reached, and many crypto exchanges have also confirmed development work is well underway, with the first few signaling readiness.
The high percentage of long-term holders is a positive indicator for Cardano, suggesting that the community has strong faith in the project's future.
Comments