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When a bearish market makes a swing on the charts, most cryptocurrencies suffer a high price. While Bitcoin and Ethereum are in the forefront of the valuation drop, other assets are generally only able to follow their example. However, such has not been the case with Cardano in 2021, as the fifth-largest asset has held its own with considerable strength.
Cardano’s value has increased by a staggering 2276 percent from the beginning of October. At the time of publication, the alt’s value had plummeted by just 40% during the most recent market crash. In fact, Ethereum has dropped more than ADA since the 19th of May.
Furthermore, the token has consistently held the $1 level, and with negative pressure easing throughout the market, the asset is expected to recover in the coming weeks. However, there may be more favourable catalysts in the space for Cardano.
Cardano third-largest holding on Grayscale; Wall Street incoming?
According to a recent announcement from Grayscale, the organization has added Cardano to its large-cap fund alongside the likes of Bitcoin and Ethereum. With a 4.26 percent allocation, the asset is currently the fund’s third-largest position. It is worth noting that, while Cardano remained on the consideration list till now, its direct listing has propelled the token ahead of assets like as Chainlink and Bitcoin Cash – both of which were listed long before ADA.
The Grayscale initiative is significant for ADA since it provides direct access to authorised investors seeking to invest in the project. Grayscale filed for a Cardano Trust in January 2021, and it now makes sense to include the token in its large-cap funds. But why is this so?
Capital Inflows were identified during the 19 May crash
While the ESG discussion raged around Bitcoin, which some believe was one of the reasons for the market crash, investors were shifting their focus to proof-of-stake assets. Coinshares discovered that after the 19 Mary drop, Cardano received $11 million in capital inflows from institutional assets.
At the same time, the Bitcoin market experienced massive capital outflows totalling $115 million. As a result, it can be deduced that institutions have been paying attention to the project even before Grayscale made its accessibility obvious, but Cardano’s next development might increase its worth even more.
Will Smart Contract additions lead to high-profile partnerships?
Possibly. Cardano just published its first-ever Plutus smart contract on its Alonzo testnet, and further advancements are planned for July. The addition of smart contract technology and ultimate deployment would imply that the construction of dApps would be feasible on the Cardano network.
The exact area that allowed Ethereum to reach a greater price would be programmable on Cardano, increasing its utility. Wall Street is already swarming into the space, and it won’t be long until they are open about their investment in Cardano.