Recently, Cardano (ADA) has experienced a significant 300% increase in Exchange Traded Product (ETP) inflows. This unexpected surge in capital from institutional investors has sparked excitement for the cryptocurrency’s potential upward trajectory. CoinShares, a prominent player in the crypto ETP industry, released a report showcasing the fund flows of various digital assets. Among the assets, Bitcoin (BTC) saw the largest inflow increase, bringing in $519 million, with a month-to-date total of $3.6 billion. Cardano, on the other hand, stood out with a remarkable inflow surge of approximately $1.2 million, marking a substantial 300% jump from the previous week.
Investors have shown a growing interest in Cardano-oriented investment products, with a total investment of $11 million in the cryptocurrency. The month-to-date inflow for Cardano reached $2.4 million, indicating a strong appetite for exposure to the digital asset. The surge in inflows comes at a critical time for Cardano, positioning it as the second most popular crypto ETP among institutional investors, based on CoinShares’ data.
Market Impact of Cardano’s Surge
Following the influx of institutional capital, Cardano’s price experienced a notable rebound from previous bearish trends. Since reaching a peak of around $0.8 in March 2024, the cryptocurrency had been undergoing a corrective phase, dropping below the $0.4 price level. However, with the Chang hard fork taking place alongside the deployment of Cardano node 9.1.0, market sentiment surrounding the cryptocurrency has shifted towards a more positive outlook. Analysts, including ‘Sssebi’ on X (formerly Twitter), have identified Cardano as an undervalued asset among the top 10 cryptocurrencies, advising investors to remain optimistic about its future prospects.
Despite facing consistent price declines in recent months, Cardano has demonstrated resilience by consolidating around the $0.4 price level. This stability amidst unfavorable market conditions highlights the cryptocurrency’s strength and ability to weather turbulent periods. As per CoinMarketCap data, Cardano is currently trading at $0.4, reflecting a 4.34% decrease over the past 24 hours. Nevertheless, analysts like Sssebi maintain a bullish stance on Cardano, foreseeing potential price growth during the upcoming bull cycle.
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