Cardano’s most loyal investors are bucking the usual profit-taking trend and are steadily adding to their ADA stacks even as prices and market heat indicators climb.

Data from Alpharactal showed that ADA long-term holders (LTH) have been steadily accumulating the digital asset since 2021 without showing signs of significant distribution.

This consistency signals confidence in Cardano’s long-term growth and a willingness to hold through potential volatility.

Meanwhile, part of this cohort’s resilience may stem from ADA’s price still sitting 74.76% below its all-time high of $3.09, reached in September 2021.

The incentive to sell may not be compelling for many investors who bought during that cycle until the asset returns to those record levels. On the other hand, ADA short-term holders (STH) are exhibiting a surprisingly more cautious behavior in the current bullish market conditions.

Notably, this cohort quickly sold during 2021’s market rally but now applies far less selling pressure despite ADA’s 150% year-on-year gain.

Instead, Alphractal noted that they have modestly increased their positions in the digital asset.

Overheated market

Outside of these traders’ behaviour, on-chain indicators suggest ADA market conditions are hot and could give the asset another significant price run.

The adjusted Sharpe Ratio, a gauge of risk-adjusted returns, stands at roughly 1, reflecting the strong market performance compared to previous cycles.

Historically, ADA has seen sharp, parabolic rallies when this ratio approaches 2, making the current reading potentially supportive of further gains.

Aside from this indicator, a major bullish catalyst may be forming on the regulatory front.

Data from the decentralized prediction marketplace Polymarket gives Cardano an 80% chance of seeing a US-approved ETF this year. This places it among a small circle of altcoins with such significant odds.

If confirmed, an ETF could draw significant new demand from institutional and retail investors alike,e which could increase ADA’s value.

Matt Hougan, the chief investment officer (CIO) of crypto asset management firm Bitwise, is predicting an explosion in the tokenization of traditional assets.

In a new blog post, Hougan says that the transition of stocks, bonds and other real-world assets (RWAs) onto blockchains instead of traditional systems may happen much quicker than he previously thought.

“I still think it will take more than a decade before the majority of stock and bond trading happens on-chain. But with major financial firms like Robinhood and Tradeweb positioning themselves for the transition today, I’ve started to wonder: could tokenization achieve 1-5% penetration in a few years? Could a dozen major pilot projects lift us to that level of market penetration?

It seems possible, and it would translate into trillions of dollars … more than any other crypto application or asset, including Bitcoin.

The narrative around tokenization is only going to accelerate from here – if Robinhood is rolling out tokenized trading, you can bet that Charles Schwab and others are studying it aggressively. I’d expect a wave of additional announcements this fall.”

Hougan names several crypto projects that could give investors exposure to an RWA tokenization boom.

“The cleanest way to invest in the rise of tokenization is to buy a basket of the top layer-1 blockchains and infrastructure plays: Ethereum, Solana, XRP, Chainlink, etc.”

Hougan also notes how Larry Fink, CEO of BlackRock, highlighted the massive growth potential for tokenization of RWAs in his 2025 annual shareholder letter, saying, “Every stock, every bond, every fund – every asset – can be tokenized.”

If Larry Fink is right, Hougan says the “tokenization market could grow over 4,000x in the coming years.”

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Bitcoin’s price has barely moved in the last week, but other signs point to growing activity on the network. On June 5, Bitcoin traded around $104,300, down 0.50% in 24 hours and off 2.5% over the past seven days. Yet data shows more people are joining the network, and more coins are being passed around.

Related Reading

Wallet Creation Jump

According to Santiment, on May 29 nearly 557,000 new wallets appeared. That was the highest number since December 2023. It means thousands of people are opening wallets even though price has stayed just under $105,000.

People normally open new wallets to send and receive bitcoins but they somehow come across the idea through new sources, increased talks among friends or create simple curiosity. In any case, an increased wallet holding indeed indicates a much wider usage.

Bitcoin’s on-chain activity has seen sharp rises this week as its price hovers just below $105K:

May 29th: 556,830 new $BTC wallets created (Highest since December 2, 2023)

June 2nd: 241,360 coins circulated (Highest since December 8, 2024)

Growth in a network’s… pic.twitter.com/2DxknVXrKT

— Santiment (@santimentfeed) June 5, 2025

Increased Token Movement

On June 2, over 241,360 BTC changed hands. This was deemed the busiest day since December 2024. Reports from Santiment suggest that high coin turnover usually coincides with increased traffic.

Traders might be moving coins in and out of exchanges, or investors could be shifting wallets. Big swings in daily token movement can point to a shift in sentiment—people either getting ready to buy or sell.

Right now, it mostly looks like more users are sending coins to each other, which keeps the network busy even when price sits still.

Big Holders Step In

Data from IntoTheBlock shows that large holders—often called “whales”—are stocking up. Their coin inflows jumped by 145% over the last seven days, and by 214% over the past 30 days.

When big players load up, it can tighten supply on exchanges. That makes it tougher for new buyers to get in without driving price higher. If whales keep buying at this rate, it could lead to more upward pressure on price once everyday investors step in again.

Related Reading

Mid Tier Investors Buy

It’s not just the really big holders adding coins. Wallets holding between 10 and 10,000 BTC added more than 79,000 BTC in just one week. That means these mid-tier holders picked up around 11,320 BTC per day on average.

As of June 2, they held over 13 million BTC in total. When both big whales and these mid-level holders keep stacking, it further cuts down the number of coins floating on exchanges. Fewer coins available often mean any shift in demand could move price more.

Featured image from Imagen, chart from TradingView