Cardano (ADA) recorded a weekly gain of a good 10 percent and is thus approaching a high for the year. Blockchain data suggests that observers may be seeing increasing interest in Cardano from major investors.
Bitcoin is in season on the crypto markets, with BTC climbing from one annual high to another since mid-October. In the wake of Bitcoin, optimism is also spreading for many altcoins, one example being Cardano (ADA). Cardano is currently trading at around USD 0.43 after a daily gain of around 8 percent, its highest level since April. Trading volumes with ADA have also risen sharply in recent days.
Crypto expert Ali points out on X that the number of transactions in which ADA is traded for USD 100,000 or more is increasing noticeably. He interprets this as a sign of growing interest in Cardano from institutional investors. However, other analysts also point out that whales could be at work, i.e. large private investors. In any case, the picture here is not entirely clear.
Meanwhile, the Cardano community is sniffing the air. For the first time since spring 2021, the number of wallets that are in the black with their ADA investment is approaching the number that are in the red. On the other hand, Cardano competitors such as Solana (SOL) have so far been much more successful in keeping up with the pace of the Bitcoin rally. Solana is trading above USD 60 at a one-year high, the highest it has been since May 2022. Cardano is still a long way from such an upswing and must instead fear being overtaken in market capitalization by Dogecoin (DOGE), the leading meme coin.
Conclusion: Is Cardano’s optimism premature?
Most recently, Cardano made a name for itself mainly through its founder Charles Hoskinson, who sought to pick a fight with Ripple (XRP), Ethereum (ETH) and even Bitcoin. The background to this is the position of the US Securities and Exchange Commission (SEC), which classifies Cardano as a security, which may end up in court. The rather neutrally generated data overview from “The Block” also summarizes various indicators for Cardano as rather “bearish”, which suggests a negative outlook. ADA’s price gains therefore appear to be more of a snapshot that lacks any momentum of its own. One example: In the NFT division , which is currently recovering, Cardano is not playing a significant role, contrary to Hoskinson’s objective, with monthly sales of just USD 4 million. Cardano is also still not really gaining a foothold in decentralized finance, where Layer-2 Base, which was only launched in August, has already overtaken ADA in terms of invested capital. In our opinion: There are no hard arguments for cheering Cardano.
Leave a Reply