Cardano (ADA) experienced a significant surge of 5% in just 24 hours, resulting in a $1 billion increase in its market capitalization, which now stands at $15.6 billion. Furthermore, it has achieved a weekly gain of 19%, making it one of the top-performing cryptocurrencies of the week.
Although Cardano is known for its stability rather than price surges, it has emerged as one of the standout performers in the past week. With a gain of 18.83% over the last seven days, it ranks as the second-best performing crypto among the top 20, trailing only behind Avalanche. In the span of a day, it has added over $1 billion to its market cap.
As of now, ADA is trading at $0.4434, reflecting a 3.33% increase in the past day. With a market cap of $15.67 billion, it holds the eighth position among the largest cryptocurrencies, surpassing Dogecoin’s market cap of $13 billion. Over the past 36 hours, it has witnessed a substantial increase of $1.6 billion in its market capitalization.
The surge in transaction volume for ADA has been one of the most notable metrics during this period. In the last 24 hours alone, the volume has skyrocketed by 27% to reach $764 million, indicating a high demand from traders. This volume surpasses that of other popular cryptocurrencies such as Chainlink, Polygon, Shiba Inu, and Litecoin.
This surge in volume can be attributed to the growing presence of whales and institutional investors. In December, the number of “large transactions” averaged above 7,000, compared to an average of around 5,000 in November. According to analysts, this surge indicates increasing interest in ADA from institutional players and whales, which often precedes price spikes.
Despite the impressive rise in ADA’s price, some analysts advise caution. They argue that peripheral tokens like ADA and Polkadot’s DOT usually enter the bull market late, and a rise in their market prices typically signifies the end of a bear market. Polkadot, for instance, has gained 16.8% in the past week.
However, despite the skepticism, ADA continues to thrive. Profitable ADA addresses have reached their highest levels since the bull market of 2021. This growth can be attributed to the strong development efforts led by Charles Hoskinson and his IOG team, as well as the support of a passionate global community.
The continuous improvements in the Cardano protocol have instilled confidence in investors, which is evident in the increasing total value locked (TVL) on the Cardano network. According to data from DeFiLlama, the TVL has been on an upward trend throughout the year, with minor dips in June and September. Currently, over $300 million worth of ADA is locked on Cardano.
However, some analysts remain unconvinced about ADA’s potential. Lady of Crypto, who has a YouTube channel with 45,000 subscribers, expressed concerns about Cardano’s slow and systematic updates, which can take several months to implement, unlike other networks that move at a faster pace.
In conclusion, Cardano’s recent surge in price and transaction volume, along with its robust development and growing community, have positioned it as a prominent player in the crypto market. While some analysts remain cautious, ADA’s performance suggests a promising future for the cryptocurrency.