The cryptocurrency market is progressing and January’s optimism led whales to start accumulating altcoins instead of throwing them into the market. Recently, Cardano (ADA) and Polygon (MATIC) have become some of the most accumulated assets by large investors.
Last week, WhaleStats reported that ADA is the most traded token among the top 100 BSC whales. Additionally, Ethereum’s competing smart contract platform also stands out for its usage among the top 1,000 investors in the Binance network.
As for Layer 2, in addition to seeing its token undergo significant accumulation, it has become one of the main assets held by the top 500 Ethereum investors and has experienced a period of major transactions with whales. According to Whale Alert’s Twitter profile, a single whale moved around $50 million in MATIC.
But with the recent correction in the crypto market, what could be driving whale interest in these altcoins? This is what we are going to explore today.
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The Ethereum competitor can be proud of the launch of the stablecoin DJED, at least at the time of writing this article. It was one of the most anticipated events in the ADA community and it finally came to fruition.
Immediately after its launch, DJED had no trouble filling its guarantee funds. For example, the stablecoin was able to attract over 29 million ADA tokens and achieved a collateral rate of 643% out of 800%.
The success of this stablecoin may have influenced the purchases of large investors, given that a stable asset is critical for the growth of a project in decentralized finance (DeFi). And DJED may already be influencing Cardano’s Total Value Locked (TVL), as since its launch, the altcoin’s TVL has increased by 39%.
Other developments may also warrant whales’ attention, such as the arrival of the mainnet of Liqwid, a decentralized platform that offers liquidity solutions for interest rate curves.
As a liquidity protocol without the need for intermediaries, users can participate in the platform as lenders, liquidity providers or perpetual borrowers with collateral.
Additionally, Cardano is set to undergo an update that will bring new features built into the Plutus smart contract programming language. Most important will be the introduction of native support for Schnorr signatures and the Secp256k1 curve (used in Bitcoin and Wanchain), which could make the ADA blockchain more interoperable with networks that use these signatures.
Polygon
Meanwhile, Polygon stands out for its major partnerships, such as a recent one with Doritos to create the non-fungible tokens (NFTs) for Doritos Triangle Studios, a virtual concert hall. The Layer-2 platform also underwent a hard fork in January that improved its network performance, making the gas royalty system more refined.
As transaction fees are always a relevant point when an investor chooses a network, the improvement may bring more users to Polygon, and the whales may just be anticipating that move.
The MATIC network is also preparing for the arrival of zkEVM, the first open-source zk-Rollup that provides users with a smooth and hassle-free experience without compromising security. The zkEVM will be fully compatible with the Ethereum Virtual Machine (EVM), allowing users to easily experience the industry-leading smart contract platform.
In conclusion, the recent accumulation of Cardano (ADA) and Polygon (MATIC) by large investors highlights the growing interest in these altcoins. As the crypto market continues to evolve, it will be interesting to see how these altcoins perform over the long term.
