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- Whale wallets now hold over 67% of Cardano’s circulating ADA supply.
- Massive ADA staking and exchange withdrawals are tightening liquid supply.
- Charles Hoskinson praised XRP’s open ecosystem over centralized stablecoins.
Cardano is once again at the center of a growing “supply shock” narrative as large holders continue accumulating ADA despite weak retail sentiment and slow price movement. At the same time, Cardano founder Charles Hoskinson has surprised the crypto market by openly praising XRP and its role in the future of digital finance.
The combination of aggressive whale accumulation, shrinking liquid supply, and rising institutional interest is reigniting debate over whether ADA could be preparing for a larger breakout later in the market cycle.
Whale Wallets Quietly Control Most ADA Supply
Recent on-chain data from Santiment shows that wallets holding at least one million ADA now control more than two-thirds of Cardano’s circulating supply. Analysts say this marks the highest level of whale concentration seen on the network in several years.
While ADA has struggled to recover alongside other major cryptocurrencies, large holders appear to be using the prolonged sideways market to steadily increase positions. Analysts estimate that whale wallets absorbed hundreds of millions of ADA between late 2025 and early 2026.
This trend has created what some traders describe as a “psychological accumulation phase,” where retail investors lose confidence while institutional or high-net-worth participants quietly build exposure.
At roughly $0.25, ADA still trades far below its previous all-time highs, adding to frustration among smaller investors who expected a stronger recovery during the recent crypto rebound.
Staking and Exchange Outflows Reduce Tradable ADA
Cardano’s staking model is also contributing to the supply shock narrative.
Nearly 58% of the circulating ADA supply is currently staked across the network. Because Cardano allows flexible staking without lockup periods or slashing penalties, many long-term holders continue keeping their tokens off exchanges.
Meanwhile, analysts have highlighted large exchange withdrawals, including tens of millions of ADA reportedly moved from Coinbase into private wallets in recent weeks.
When heavy staking combines with whale accumulation, the amount of ADA available for active trading becomes increasingly limited. Some analysts believe this could amplify future price movements if demand rises again.
Institutional Interest Around ADA Continues Building
Interest from institutional firms is also growing following the launch of Cardano futures products on the CME. Investment firms including VanEck, Bitwise Asset Management, 21Shares, and Grayscale Investments have all been linked to ADA-related investment products.
Analysts say a decisive move above the $0.45 to $0.60 range could open the door for a stronger recovery phase in 2026.
In a separate development, Hoskinson made headlines after describing XRP as a stronger “Web2.5” product than stablecoins like USDT and USDC.
According to Hoskinson, the key advantage of the XRP Ledger is its open and permissionless structure. He argued that developers can build freely on XRP without requiring approval from Ripple.
His comments also criticized centralized stablecoin issuers such as Tether and Circle, which retain the ability to freeze wallets and blacklist addresses.
As stablecoins become a larger part of the global payments conversation, debates around openness, regulation, and decentralization are becoming increasingly important across the crypto industry.
Also Read: Cardano Leios Proposal Passes With 84% Support Ahead of Major Upgrade Launch
Cardano’s growing whale concentration and massive staking participation are fueling renewed speculation about a potential ADA supply shock. While retail sentiment remains weak, institutional interest and shrinking exchange liquidity could create conditions for stronger volatility later in the cycle.
At the same time, Hoskinson’s unexpected praise for XRP highlights how the crypto industry’s focus is shifting toward payment infrastructure, open networks, and real-world financial integration.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
