In the last month, 7.6 billion more ADAs were transferred to Binance than withdrawn according to data from Flipside Crypto. Meanwhile, the price of ADA dropped from $0.141 on August 14 to $0.097 by September 14 — a 31% decrease.
ADA price and market capitalization. Source: CoinMarketCap.
Before the asset’s recent backtrace in price, Cardano’s native currency was on a bull run, culminating with a recent upgrade on July 29. During the run, ADA was able to entrench itself in the top-10 cryptocurrencies by market capitalization, but has dropped out since.
Flows of ADA’s 30-day active supply. Source: Flipside Crypto.
On August 14, the vast majority of the 30-day active ADA supply was held by the users — 11.4 billion out of 12.2 billion. However, by the end of the period, only 1.5 billion was left with the users. Meanwhile, Binance experienced a net inflow of approximately 7 billion ADA, while “Top holders” accumulated 3 billion additional ADA.
ADA holders may have decided it was simply time for them to cash out some of the gains they had accumulated in the preceding months.