The percentage of Cardano coins (ADA) owned by whales has decreased dramatically and is about 8% of the total supply. Compared to similar cryptocurrencies, this percentage is significantly lower, making ADA one of the most decentralized major crypto currencies.
Despite these promising developments in terms of decentralization and the use of advanced technology, Cardano faces market challenges and struggles to regain its recent upward trend.
Divide and conquer
The reduction in ADA supply under the control of whales indicates a change in the distribution of tokens among investors, leading to a more decentralized network. As the ADA tokens become more widespread, the cryptocurrency is more likely to become more resistant to manipulation and sustain a robust, diverse ecosystem of stakeholders.
Unfortunately, Cardano’s progress in decentralization and innovative technologies has not led to an increase in its share price. After several weeks of upward movement, ADA is now struggling to regain momentum.
One possible reason for ADA’s market challenges may be the recent volatility of the broader crypto market. Since many cryptocurrencies go through corrections and fluctuations, it is not surprising that Cardano’s market performance has been affected. In addition, some investors may still have doubts about the long-term viability of Cardano’s technology, particularly because of the project’s academic approach to applying recently developed solutions.
The future of Cardano
It is important to note that while Cardano’s current market challenges may be of concern to some investors, the project’s core principles of decentralization and innovation remain strong. As the crypto world continues to evolve, Cardano’s commitment to creating a more inclusive financial system could prove to be a valuable asset in the long run.