According to on-chain analytics firm Santiment, the Cardano blockchain has recently hit a major milestone for dormant coin activity. In a tweet thread, Santiment revealed that Monday, October 31st, marked the highest level of old Cardano wallets transferring ADA tokens since April 2022.
Source: Santiment – Start using it today
This increase in long-inactive wallets moving ADA indicates that more coins are coming back into active circulation on the network after months of lying dormant. Santiment specifically highlighted movement from wallets holding between 100,000 and 10 million ADA as driving the trend.
Dormant coin movements often precede spikes in trading activity and token velocity. As such, Santiment’s findings suggest Cardano may be gearing up for a period of accelerated on-chain activity after a relatively quiet year.
Several factors could be catalyzing the awakening in older wallets. The recent rally brought ADA prices above $0.29.
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It remains to be seen whether the rising dormant coin movements translate into a sustained trend or prove to be a short-lived spike. However, Santiment’s data indicates Cardano has reached an important inflection point, with tailwinds growing for the network after an extended lull.
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