What happened
Over the last 24 hours, the price of the Cardano (ADA 4.06%) cryptocurrency has traded nearly 8% higher as of 2:23 p.m. ET today for no obvious reason, although there looks to be some technical support occurring. Ada traded higher than most cryptocurrencies.
So what
With Ada trading near 15-month lows, it appears that Cardano whales, those who hold large amounts of the token, are accumulating. Data from the business intelligence firm Santiment shows the number of crypto wallets with more than 10 million Ada has increased by nearly 2.15% since mid-April, hinting that whales are eying a recovery.
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Furthermore, the price of Ada right now is rising around a level that triggered a 65% run in March of this year.
With the Federal Reserve this afternoon officially raising its benchmark overnight lending rate, the federal funds rate, a half point, the largest increase it's made at one time in two decades, I think it's a bit tough to know how cryptocurrencies, in general, will respond, as predicting their behavior over the last six months has not been easy.
Now what
There are certainly a lot of cryptocurrencies out there, but the Cardano cryptocurrency certainly intrigues me. The network looks to be strong from a technical perspective, with the potential to one day process 1 million transactions per second.
The network also runs on a proof-of-stake concept, in which validators stake their Cardano tokens to approve transactions on the network and mint new tokens. Proof-of-stake is much more energy efficient than the proof-of-work concept that tokens like Bitcoin currently run on, in which miners use a massive amount of computing power to solve a cryptographic puzzle.
These are just a few reasons Cardano could be a good long-term crypto play.
