Cardano (ADA) has recently experienced a significant surge in interest from institutional investors, leading to a 300% increase in Exchange Traded Product (ETP) inflows. This unexpected influx of capital could potentially signal a positive trend for Cardano, especially with the upcoming Chang hard fork.
According to a report by CoinShares, a key player in the crypto ETP industry, digital asset investment products saw a relatively modest inflow of around $245 million in the last week. Among the various digital assets, Bitcoin (BTC) saw the largest increase in inflows, with $519 million flowing into the pioneer cryptocurrency.
However, what caught the attention of many was the impressive surge in inflows into Cardano’s ETP, totaling approximately $1.2 million. This surge represented a staggering 300% increase from the previous week, placing Cardano second among all crypto ETPs in terms of performance.
Institutional investors have shown particular interest in Cardano, investing a total of $11 million in Cardano-oriented investment products. The month-to-date inflow for Cardano stands at around $2.4 million, indicating a growing confidence in the cryptocurrency.
CoinShares also reported that the launch of Ethereum Spot Exchange Traded Funds (ETFs) saw significant inflows, leading to a total of $2.2 billion in newly issued ETFs. Ethereum (ETH) trading volumes also rose by 542%, showcasing a positive trend in the market.
Following the surge in ETP inflows, Cardano’s price experienced a slight rebound from previous bearish trends. Despite a corrective phase that saw the price decline below $0.4, the Chang hard fork deployment and the release of Cardano node 9.1.0 have generated more positive market sentiment around the cryptocurrency.
Analysts like ‘Sssebi’ have highlighted Cardano as one of the most undervalued assets among the top 10 cryptocurrencies. They have urged investors to remain bullish on Cardano, predicting potential upsides for the cryptocurrency in the future.
While Cardano has faced price struggles in recent months, with the cryptocurrency consolidating around $0.4, analysts like Sssebi remain optimistic about its prospects. The current price of Cardano is $0.4, reflecting a 4.34% decrease in the last 24 hours.
Looking ahead, analysts anticipate that Cardano will outperform in the crypto market, driven by its robust ecosystem of Decentralized Applications (DApps). Despite market fluctuations, Cardano’s resilience and strength have positioned it well for potential growth in the coming months.
In conclusion, Cardano’s recent surge in institutional interest and ETP inflows could pave the way for a positive trajectory for the cryptocurrency. With the Chang hard fork underway and market sentiment turning more favorable, Cardano continues to be a cryptocurrency to watch in the evolving digital asset landscape.