Cardano Sees $932 Million Outflow as Whales Accumulate 410 Million ADA

Cardano (ADA) has experienced a significant bullish momentum this year, with nearly $1 billion worth of ADA withdrawn from centralized exchanges. According to blockchain analytics firm TapTools, approximately $932 million in ADA has left exchanges since January. This trend suggests that investors are moving their holdings to self-custody wallets, anticipating future price appreciation. This pattern mirrors the behavior observed during the 2021 bull run, which drove ADA to its all-time high of $3.10.

Historically, large-scale outflows from exchanges often indicate growing investor confidence and reduced sell-side pressure, especially when combined with rising on-chain activity and accumulation. Earlier this month, a popular crypto analyst noted that whale wallets had accumulated over 410 million ADA in April alone, further bolstering the bullish outlook. On Tuesday, another crypto analyst amplified the bullish sentiment around Cardano (ADA), forecasting a potential 10- to 20-fold increase in its price during the current market cycle. The analyst noted that ADA is poised at a key technical support level, with a bullish channel hinting at a strong move ahead.

Cardano’s fundamentals are also driving renewed interest from whales. One of the most notable developments is Cardano’s partnership with Brazil’s largest government IT provider, SERPRO in March. This collaboration integrates Cardano’s blockchain technology into Brazil’s digital infrastructure, which handles approximately 33 billion transactions annually. Such a large-scale implementation underscores Cardano’s potential for real-world applications and sets a precedent for worldwide blockchain adoption.

Cardano’s development activity remains robust, with a significant increase in smart contract deployment. The number of Plutus V2 scripts had grown from about 8,100 on January 2024 to over 133,000 to-date, indicating a thriving developer ecosystem and a commitment to expanding the platform’s capabilities. Technologically, Cardano is preparing to launch the “Leios” upgrade, designed to significantly increase transaction throughput without compromising decentralization. This enhancement is expected to bolster the network’s scalability and efficiency, positioning Cardano to better compete in the DeFi and smart contract arenas.

Additionally, Cardano is set to integrate Bitcoin into its ecosystem before the end of the month. This integration will allow Bitcoin holders to utilize their assets within Cardano’s decentralized applications, fostering greater interoperability between the blockchains. At press time, ADA traded around $0.59, reflecting a 3.19% loss in the past 24 hours.