In just 24 hours, Cardano went up by 27%, thus becoming the third largest-cryptocurrency. The growing institutional interest in altcoins ensures the potential that networks such as Cardano offer.
Exceptional performance in recent weeks pushed the price of Cardano (ADA) to a new all-time high. That also made it become the 3rd largest cryptocurrency in the ecosystem.
At the time of writing this article, Cardano is trading at USD 1.36, accumulating a gain of 27.72% in the last 24 hours and 30.64% in the last 7 days.
The main catalyst for the rise that this cryptocurrency is experiencing is the wait for the launch of Mary. This Cardano update will allow moving forward into the Age of Goguen. There, the network will finally be able to support smart contracts.
It is not only retailers who are entering this market eagerly awaiting improvements to the Cardano network.
Cardano became the 3rd largest cryptocurrency on the derivatives market, thanks to open interest in futures worth USD 580 million. With this, it exceeds Litecoin, which had exceeded it by more than 50% advantage until recently.
Institutional Trust in Cardano
As if that were not enough, cryptocurrency hedge fund FD7 Ventures announced that they sold USD 750 million worth of Bitcoin. They did it to increase the holdings of Polkadot and Cardano.
Investing that amount of money implies a great movement of trust towards these cryptocurrencies. It is equivalent to 75% of the USD 1 billion that is under their administration.
There is great institutional interest in migrating to different altcoins. In this case, the fund ensures the potential those networks such as Cardano and Polkadot offer for the construction of Web 3.0.
Both networks are increasingly viable alternatives to Ethereum since high gas prices have put pressure. That has made users choose other platforms that are compatible with smart contracts.
Cardano Exhibits a Clear Bullish Trend
This upward behavior shows that Cardano has a short-term clean bullish trend. It recently picked up demand in the support zone near USD 0.84 to start the search for new all-time highs.
The price of ADA is developing short-term momentum, now showing some exhaustion. The proximity of the update and a bullish moment suggest that there should be no sales.
If a crash occurs, it will be nothing more than profit-taking, since the bulls will eventually regain control.
There Is Still a Long Way to Go for Cardano against BTC
Although there are all-time highs against the US dollar, Cardano is still far from doing the same against Bitcoin. Trading at 0.00002929 BTC, ADA is 200% off its all-time high compared to the pioneering cryptocurrency.
In addition to the strength of Bitcoin in the ecosystem and its hierarchy as a store of value, it also shows that there is room for greater gains.
This is just a new all-time high against the US dollar since the cycle should extend further. The adoption of the Cardano network as an alternative to Ethereum could lead to a rally that accelerates the speed.
By Alexander Salazar
