In the midst of a lackluster month for the cryptocurrency market, Cardano (ADA) has caught the attention of high-profile investors, as whales holding significant amounts of ADA tokens have been quietly accumulating more assets.

Growing Confidence Among Cardano Whales

According to the latest findings from IntoTheBlock (ITB), Cardano whales, defined as those holding between 100 million and 1 billion ADA, have increased their balances by 11% over the past month. This surge in whale activity indicates a growing confidence or strategic positioning among large ADA holders, who now collectively command 6.71% of the entire token supply.

Market Sentiment and Price Movement

Despite the increase in whale activity, Cardano's price performance has closely mirrored the broader market movement, with ADA experiencing a modest recovery on Thursday. The cryptocurrency surged by nearly 6% in the past 24 hours, reaching $0.456 at the time of writing.

Bullish Price Predictions and Speculation

Despite recent market fluctuations, experts remain optimistic about Cardano's long-term potential. Some analysts predict that ADA could mirror its 2021 surge and potentially reach levels as high as $7.80. Furthermore, speculation surrounding a potential listing of ADA on Gemini, a US-based cryptocurrency exchange, has fueled anticipation of a significant price rally for the token.

Declining User Activity Raises Concerns

While bullish price projections abound, data on Cardano's user activity presents a contrasting picture. Daily transactions on the Cardano network have been declining since March, currently hovering around 50.7k compared to almost 96k recorded two months ago. Similarly, daily active addresses have followed a similar downward trend, dipping below 24k this month. These declines in user activity raise concerns about the network's current usage and adoption rates despite positive sentiment surrounding Cardano's price potential.

Conclusion

As Cardano whales continue to accumulate ADA tokens, the cryptocurrency's market dynamics remain a subject of interest and speculation. While bullish price predictions paint a rosy picture for ADA's future, declining user activity underscores the importance of sustained network growth and adoption for the long-term success of Cardano.