Amid the crisis in the cryptocurrency market that has hit bitcoin hard, Cardano has continued to perform well in recent weeks. If the approach is about to happen hard fork Vasil helps to explain the rise in ADA prices, this factor is far from the only ones that justify institutional interest in altcoin. A Twitter account focused on the Cardano community, ADA Whale published a post last weekend in which he shared four additional reasons for the influx of institutional funds.
The pity of some is the happiness of others
This phrase equates to the various reasons listed by ADA Whale to explain Cardano’s price rise. And the impact of the enthusiasm associated with the hard fork Vasil, the account also talked about the collapse of some crypto projects and the limitations of its mechanisms stacking. In addition there are the liquidity problems and over-indebtedness of some crypto lending platforms. Not to mention, the post thus referred to Terra, Celsius or even Three Arrows Capital whose difficulties have pushed the entire market forward again.
So institutional investors rushed to withdraw funds invested in bitcoin and ether to partially redirect them to ADA. In fact, Coinshares reported a negative outflow of $ 102 million in the past week, while bitcoin amounted to $ 57 million, compared to $ 41 million for ether. Meanwhile, ADA has emerged as the top cryptocurrency that investors wanted to deposit ahead of the top two cryptocurrencies in the market. To that end, Coinbase customers showed a median retention time of 138 days for ADA, per 123 days for bitcoin and 96 days for ether.
Maximum indicators in green
While the total market capitalization of the cryptocurrency market has plummeted since the beginning of the year, the total value locked (TVL) in Cardano has only grown. This in particular jumped 50,000%, thanks mainly to Minswap’s liquidity protocols which attracted huge fans of the stacking. Cardano is by the way the second platform became smart contracts although the feature is only available for nine months on the network.
He also succeeded the mark of 100,000 active users was exceeded in March before the whales began chasing to the ADA the following weeks. Expectations about the improvements that will be introduced by the hard fork Vasil then added to this set of positive signs for Cardano. The latter is expected by the public in the short term with a price increase that will allow the asset to surpass the symbolic bar of the dollar.
While the optimism around Cardano allowed him to reach $ 0.62 at the beginning of the month, ADA is now only trading at $ 0.47 at the time of writing. The altcoin is experiencing a turbulent weekend where bitcoin and ether drops below $ 18,000 and $ 1,000 respectively affected the major currencies in the market.
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Luc Jose Adjinacou
Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and put forward my pen information related to this ecosystem.