#Why Are Major Holders Accumulating Cardano?
The trend of significant holders accumulating Cardano's cryptocurrency, ADA, resembles an end-of-season sale. Over the past year, this behavior has been notable, particularly in light of the token's price action.
According to recent on-chain analysis, wallets with at least 1 million ADA now possess a substantial combined total of around 25.1 billion tokens. This figure represents about 67.5% of Cardano's circulating supply, marking the highest concentration observed since July 2020. At that time, the crypto industry was preparing for its next bull market.
#What is the Divergence Between Whales and Retail Investors?
A clear divergence exists between the actions of major stakeholders and smaller retail investors. Since December 2023, a group of large holders has aggressively accumulated ADA, acquiring hundreds of millions of tokens even as the price faced significant declines. Currently, ADA has dropped over 70% in the last nine months and is trading at around $0.27, with a market capitalization of about $10 billion, down more than 20% year-to-date in 2026.
In contrast, smaller wallets have been selling off their holdings. This trend escalated, with larger wallets acquiring over 150 million ADA during the recent sell-off among retail investors.
#What Do Current On-Chain Metrics Indicate?
Analyzing Cardano’s decentralized finance (DeFi) ecosystem reveals concerning trends. The total value locked (TVL) in DeFi applications has dramatically decreased to approximately $137 million as of mid-May 2026. This represents a severe 80% decline from its December 2024 peak of $686 million. Such a low TVL positions Cardano far behind numerous competing blockchain networks, many of which have launched after Cardano.
The daily trading volume on decentralized exchanges within Cardano is hovering around $2 million—this figure is alarming for a blockchain with a ten billion dollar market cap. It indicates minimal use of Cardano for trading or financial services at present, raising questions regarding its viability as a productive DeFi ecosystem.
Low trading volume leads to reduced transaction fees, which translates to lower revenue for the network. The current behavior demonstrated by whale investors appears to be a long-term play, reflecting their confidence that Cardano's inherent value will eventually align with their investment strategies.
#What Are the Implications for Investors?
The decline in Cardano's DeFi TVL by 80% in just 18 months is significant. This situation cannot be resolved by a few whales holding large quantities of ADA. The current TVL of $137 million indicates that capital is moving away from Cardano towards other blockchains. In a competitive, multi-chain ecosystem, where easy migration to platforms like Ethereum or Solana is possible, this declining TVL serves as a worrying sign rather than a temporary setback.
With ADA trading at $0.27, the market reflects significant skepticism regarding its recovery trajectory. Meanwhile, the large holders maintain a different viewpoint. At this juncture, the divergence between the beliefs of the whales and those of the retail investors will likely play a critical role in determining future outcomes. One side will indeed prevail as events unfold.