The cryptocurrency market is growing, and the optimism from January has encouraged whales to start hoarding alternative coins rather than dumping them. Recently, Cardano (ADA) and Polygon (MATIC) have been among of the assets that big investors have accumulated the most.
According to last week's WhaleStats report, among the top 100 BSC whales, ADA is the token that gets traded the most. Additionally, among the top 1,000 investors on the Binance network, utilization of the Ethereum rival smart contract platform stands out.
Regarding Layer 2, in addition to witnessing its token endure considerable accumulation, it has also undergone a time of significant whale transactions and has grown to be one of the top assets held by the top 500 Ethereum investors. The Whale Alert Twitter handle claims that just one whale moved around $50 million in MATIC.
But why might whales be interested in these altcoins given the current fall in the cryptocurrency market? We will investigate that today.
Cardano (ADA)
At least as at the time this article was being written, the DJED stablecoin's launch was something to be proud of for the Ethereum rival. For the ADA community, this was one of the events that was most eagerly awaited.
As soon as it began operations, DJED had no trouble funding its guarantee fund. A collateral rate of 643% out of 800% was attained by the stablecoin, which was able to draw almost 29 million ADA tokens.
Given that a stable asset is essential for the expansion of a project in decentralized finance, the success of this stablecoin may have encouraged the acquisitions of significant investors (DeFi). And given that Cardano's total value locked (TVL) has increased by 39% since its inception, DJED may already be having an impact on this altcoin's TVL.
The introduction of Liqwid's mainnet, a decentralized platform that provides liquidity solutions for interest rate curves, may be another event that merits whales' attention.
Users can engage on the platform as lenders, liquidity providers, or perpetual loan borrowers with collateral since it serves as a liquidity protocol without the need for middlemen.
Additionally, a Cardano version that integrates new capabilities into the Plutus smart contract programming language is anticipated. The biggest change will be the addition of native support for Schnorr signatures and the Secp256k1 curve (used in Bitcoin and Wanchain), which may improve the interoperability of the ADA blockchain with these networks.
Polygon (MATIC)
In the meanwhile, Polygon has been distinguished by its significant alliances, including a current one with Doritos to produce the non-fungible tokens (NFTs) for Doritos Triangle Studios, an online performance venue. Additionally, the Layer-2 platform experienced a hard fork in January that enhanced the functionality of its network and improved the gas charge structure.
The increase in transaction fees may attract more users to Polygon, and whales may just be anticipating this shift as transaction fees are always a factor when an investment picks a network.
Additionally, the MATIC network is getting ready for the introduction of zkEVM, the first open-source zk-Rollup that provides customers with a simple, hassle-free experience without sacrificing security. The Ethereum Virtual Machine (EVM) and the zkEVM will be fully compatible, enabling users to easily use the leading smart contract platform.
Finally, the recent investment in Cardano (ADA) and Polygon (MATIC) by major investors demonstrates the rising demand for these cryptocurrencies. It will be interesting to observe how these cryptocurrencies do over the long run as the crypto industry develops.
