Cardano emerged as the big bet on the cryptocurrency market in the first half of last year. But since then, what would be ETH’s “killer” has seen its value plummet and interest around the ADA plummet. But that could soon change. After all, data point to a renewed interest in Cardano.
Cardano sees increase in retail interest
Recently the ADA network saw a massive increase in the number of retail traders which ended up being reflected in balances in users’ wallets.
According to on-chain data provided by Glassnode, the number of balances that hold the asset for 30 days or less has increased by 186%.
“The data suggests that short-term traders are holding 36% of the cryptocurrency supply. Such a strong rise in short-term rates could be linked to the market and fundamental conditions Cardano currently finds itself in,” said trader Arman Shirinyan.
Furthermore, he pointed out that after the Fed’s 50bp rate hike recently, a large part of the cryptocurrency market felt relief and saw an extremely short-lived rally in the market, with some assets gaining up to 40% on a daily candle.
In Cardano’s case, the cryptocurrency also benefited from market relief and gained 17% in value, bringing hope to some long-term investors.
cardano
However, the sudden increase was followed by a massive avalanche that caused the market to lose more than $100 billion in minutes. Cardano, for example, lost more than 8%, virtually zeroing the gains of the previous day.
Shirinyan highlighted that, although the volatility of the crypto market is not contributing to the value of ADA, at the other end, the process of maturation and development of Cardano remains strong.
“In early April alone, the Cardano network recorded $300 million in blocked funds across various decentralized platforms and smart contracts,” he highlighted.
He further highlighted that Cardano is currently awaiting delivery of various decentralized solutions and projects, such as the stablecoin Djed, which is expected to become a bridge between fiat assets and Cardano’s underlying currency, as well as Daaps and DeFi applications.
“When everything is active, probably the ADA price will start to rise again, even in a bear market”, he concludes.
