The richest 10% of Cardano addresses control 94% of all ADA supply in circulation
Despite a turbulent 2021 for the entire crypto industry, ADA whales appear to be motionless as the few richest owners control around 94% of all circulating supply.
According to data from on-chain analytics platform Coin Metrics, the top 10% of Cardano whales held more than 31 billion ADA out of 33.43 billion coins in circulation as of December 13, 2021.
It is noteworthy that the ADA share in these top 10% of addresses has steadily increased since the beginning of the year. Starting from $ 30 billion in January, the amount of ADA held by these addresses rose more than 1 billion, or 3%.
ADA total held by the richest 10% of addresses | Source: CoinMetrics
Whales collect more than they sell
Interestingly, data from Coin Metrics shows that these top addresses are accumulating more ADA, which correlates with growing activity on the network. In addition, according to information from mood, Cardano, Polkadot and Solana are among the top 3 networks with the highest daily growth as 2021 approaches the end of the year.
In fact, Cardano is working on several projects in its network such as the development of smart contracts and the DeFi ecosystem. It is likely that these changes will catalyze confidence in the asset and encourage the whales to accumulate more ADA.
Top crypto projects in terms of daily development | Source: Santiment
In the meantime, report In October, “About Cardano” by the digital asset manager Grayscale Investments, it is said that ADA is undervalued compared to the second largest crypto currency ETH. The report comes after ADA hit an all-time high of more than $ 3 in early September, down from $ 0.178 in January.
The crypto community recently bet that the price of ADA will rise 80% and hit $ 2.40 on December 30th, showing that they are confident the coin will trade higher. Cardano also had good on-chain activity with 2x more transaction volume than Ethereum and was also ranked as the second most active chain.
There are also very few whales that control Bitcoin
Cardano has a small percentage of whales that control most of the supply, but it’s not the only cryptocurrency experiencing this situation. Even bitcoin whales control a higher percentage of the circulating supply. Earlier this year, 99% of the circulating bitcoin supply was held by just 10% of BTC wallets.
This raised many questions about Bitcoin’s claims to decentralization, especially since miners were also largely concentrated in China at the time. At this time, this issue has not been addressed for Cardano, even though whale populations are growing significantly.
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