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Environmental disinformation on Bitcoin seems to be all over the place these days. Is it, however, tempting more investors to look for proof-of-stake projects?
Institutional inflows into Cardano (ADA) investment items increased dramatically last week, despite waning interest in Bitcoin (BTC) and Ethereum (ETH), reflecting the rise of proof-of-stake funds in the face of the new round of environmental FUD in the markets.
According to CoinShares, institutional investment managers purchased $10 million in ADA goods in the week ended May 24. Cardano venture funds attracted the most money of any digital commodity.
In contrast, Bitcoin assets saw a $110.9 million outflow over the same week. The overall amount of ether outflows was $12.6 million.
According to CoinShares, investors put $5.5 million into Polkadot funds and $7.1 million into multi-asset investment options.
Cardano investment goods have attracted $24 million in retail investments so far this year, compared to $4.13 billion for Bitcoin and $924 million for Ether.
CoinShares attributed the abrupt shift towards proof-of-stake cryptocurrencies like Cardano to environmental backlash towards Bitcoin. The fund manager elaborated:
“Cardano saw the largest inflows of US$10m, which may represent investors actively choosing proof of stake coins based on environmental considerations.”
Bitcoin’s flash plunge to less than $30,000 last week sparked a tidal wave of selling in the industry, with Ether, Cardano, and every other big altcoin setting new local bottoms. According to CoinShares, Bitcoin volumes on exchanges reached a record all-time peak of $155 billion last week. On Monday, markets seemed to be on the mend, but it is still too early to call a bottom.
Before the market crashed last week, ADA was one of the best-performing cryptocurrencies. The cryptocurrency made a series of highs as it broke through the $2.00 barrier on its way to new highs near $2.40.
At the time of publishing, ADA was up 33.5 percent to $1.50, with a total market capitalisation of $47.9 billion.