During the first half of February and the previous month, altcoins, particularly Cardano and Polygon, were the most attractive assets for investors.
Large investors are accumulating altcoins instead of selling them, and Cardano (ADA) and Polygon (MATIC) have been among the most popular assets for whales to accumulate, reflecting the positive sentiment in the cryptocurrency market.
WhaleStats revealed last week that Cardano's ADA is the most traded token among the top 100 Binance Smart Chain (BSC) whales. Moreover, the smart contract platform, which is an alternative to Ethereum, is also gaining prominence among the top 1,000 investors on the Binance network in terms of usage.
Layer 2, apart from experiencing a significant accumulation of its token, has also become one of the top assets held by the leading 500 Ethereum investors, and it has recently witnessed significant whale transactions. A single whale transferred around $50 million in MATIC, as reported by the Whale Alert Twitter profile.
Today, we will investigate the reasons behind the whales' increasing interest in altcoins such as Cardano and Polygon, especially given the recent cryptocurrency market correction.
What's happening around Cardano?
The Ethereum competitor is launching the new Cardano Stablecoin DJED. This launch is a significant accomplishment for Cardano, and the community eagerly anticipated this event.
In the first weeks of launch, stablecoin attracted many users across the crypto web. The positive reception of the DJED stablecoin could have played a role in attracting big investors to the project, as having a stable asset is important for DeFi's growth. The success of DJED may also be impacting Cardano's total value locked (TVL), with a 39% increase in TVL observed since its launch.
Another development that might have caught the whales' attention is the release of Liqwid's mainnet, a decentralized platform that provides liquidity solutions for interest rate curves.
Users can engage in lending, providing liquidity, or borrowing perpetual loans with collateral on Liqwid's platform without the need for intermediaries, as it is a liquidity protocol.
What’s happening around Polygon?
Polygon has been making headlines for its notable partnerships, including a recent one with Doritos to develop non-fungible tokens (NFTs) for its virtual concert venue, Doritos Triangle Studios. The platform underwent a hard fork in January, which improved its network's performance and refined the gas fee system.
Investors often consider transaction fees when choosing a network, and Polygon's recent improvement to its gas fee system may make the network more appealing to users. Whales may be anticipating this and accumulating the asset in advance.
Polygon's MATIC network is getting ready for the launch of zkEVM, the first-ever open-source zk-Rollup which provides a secure and seamless experience for users. It is fully compatible with Ethereum Virtual Machine (EVM), which enables users to access the leading smart contract platform without any hassle.
The increased accumulation of altcoins Cardano (ADA) and Polygon (MATIC) by large investors indicates a rising interest in these digital assets. With the continuous evolution of the cryptocurrency market, the long-term performance of these altcoins remains to be seen.