Cardano’s largest holders have been quietly accumulating the native token ADA for the past two years, pushing their share of the total supply to levels not seen since mid-2020, according to data from Santiment. Wallets that hold at least one million ADA now control 25.09 billion tokens, which is roughly 67.47% of the existing supply. This marks an all-time high concentration among the so-called whales, and the accumulation trend has been running uninterrupted since December 2023.
Accumulation during a price slump
The buying has occurred amidst a prolonged downturn for ADA. The token has shed about 71% of its market capitalization over the past nine months, which suggests that whales have been stepping in to buy into the weakness. As of Friday during Asian trading hours, ADA sat at $0.27, giving it a market cap of roughly $9.96 billion. Since the broader market peaked in late 2024, ADA has been one of the worst performers among the top ten cryptocurrencies by market cap. The accumulation has happened during that drawdown rather than after it, implying a deliberate long-term strategy rather than a reaction to a bounce.
On-chain activity tells a different story
While whale wallets are growing, Cardano’s on-chain usage has dropped sharply. Total value locked in its decentralized finance ecosystem now sits at just $137 million, an 80% decline from the December 2024 peak of around $686 million, according to DefiLlama. Daily decentralized exchange volume across the entire chain stands at just $1.95 million. In the past 24 hours, Cardano generated only $1,767 in chain fees and $353 in revenue. Active addresses over the same period numbered just 15,975.
These numbers suggest a network where the main token is being accumulated for long-term holding rather than for use in on-chain activities like trading or lending. The chain appears quiet, with little to no momentum in DeFi or other applications.
What it means for the token
The concentration of supply in whale hands can be interpreted in different ways. Some might view it as a bullish sign, as large holders are often seen as more informed than retail traders. Others worry about centralization risk, since a small number of wallets now control more than two-thirds of the entire supply. The lack of on-chain activity also raises questions about the token’s use case beyond simple speculation or storage of value. For now, whales seem to be betting that ADA will regain its former highs eventually, even as the ecosystem around it remains subdued.
