Cardano Reclaims Top-Tier Status Amid Institutional Accumulation

Cardano's recent price increase of nearly 20% has propelled it back into the top 10 largest cryptocurrencies by market capitalization. This sudden shift in fortunes is largely attributed to sustained accumulation by major investors, who have continued to buy ADA tokens even as the price declined.

A closer examination of on-chain analytics reveals that digital wallets holding between 100,000 and 1 million ADA tokens (classified as 'Sharks' and 'Whales') have aggressively added to their holdings over the last six months. This cohort has absorbed approximately 819.4 million ADA during this timeframe, increasing their collective share of the total supply from 66.84% to 68.44%. Notably, these large-scale investors have maintained their buying activity consistently, even as Cardano's price declined.

While the renewed top-10 ranking is a significant milestone for Cardano, its ability to maintain this position remains uncertain. The key question is whether the substantial accumulation by large holders will be followed by renewed momentum and participation from the broader retail market. However, the sharp decline in overall trading volume casts doubt on this prospect.

Institutional validation of Cardano's growth has also gained traction, with Grayscale Investments adjusting the composition of its Smart Contract Platform Select Capped Index Fund to include a 20.2% weighting for ADA. This rebalancing acts as a strong signal of increasing institutional acceptance and may contribute to renewed momentum for the cryptocurrency.