On-chain data reveals Cardano has observed increased transactions involving dormant coins recently, suggesting that the price decline has caused long-term holders to become active again.
Cardano Has Seen Spikes In Age Consumed RecentlyWhen the value of this metric is high, it means the network is observing the movement of a large number of old tokens. On the other hand, it being low suggests coins being involved in a transaction are the ones that were purchased relatively recently (or alternatively, if old tokens are being shifted, they don’t involve a significant count).
Now, here is the chart shared by Santiment that shows the trend in the Age Consumed for Cardano over the past month:
As displayed in the above graph, the Cardano Age Consumed stayed at relatively low levels during May, but the price plunge in June has been accompanied by a few spikes in the indicator. Interestingly, the spikes only started halfway through the drawdown, meaning that they likely came as a reaction to the bearish action, rather than something that kicked off the decline itself.
In the chart, Santiment has also attached the data of another indicator called the Mean Dollar Invested Age. This indicator calculates the age of the average dollar invested in the cryptocurrency.
While there hasn’t been an outright reversal in course, the Mean Dollar Invested Age has still witnessed a slowdown in growth, indicating that the movement of dormant coins has been significant enough to have an impact.
A particularly strong pause in the indicator came alongside June 9th’s Age Consumed spike, which was the largest one on the Cardano network since April. “Historically, clusters of Age Consumed spikes paired with a pause (or downturn) in Mean Dollar Invested Age have often appeared around key market turning points,” explained the analytics firm.
ADA PriceAt the time of writing, Cardano is trading around $0.16, down more than 26% over the past week.
