Cardano (ADA) jumps owing to millions of institutional investors
May 26, 2021 7:47 AM
Cardano's ADA is back on track for growth (+ 13%), thanks to purchases of $ 10 million from institutional investors.
The cryptocurrency market could well enter a phase of recovery, after a very sharp correction. While Bitcoin was involved, other crypto-assets were not spared, however. Observers also pointed to a bubble phenomenon.
Is this bubble now a thing of the past? It may still be a little early to conclude. Nevertheless, the main tokens of the market have returned to growth since May 24, as did the ADA.
ADA in the lead with institutional investors
Cardano's native cryptocurrency is up 13.6% to $ 1.56. She is not yet back above the $ 2 mark, which she reached on May 14. Since then, the ADA has been dropping dramatically.
Bitcoin is also finding color. Are environmental concerns forgotten for investors? Probably not. The latter do not draw a line on the events of the last few weeks.
On the contrary, energy consumption is now a factor of choice. And Cardano, which is based on a Proof Of Stake consensus, would benefit from the new deal. Institutionalists would thus arbitrate in favor of the ADA.
In any case, that is the analysis of CoinShares. In the week ending May 24, Cardano investment funds attracted more capital than any other digital asset. Institutional investors therefore acquired $ 10 million worth of ADA products.
Investors who Supports PoS like Cardano
For comparison, over the period, Bitcoin funds recorded a capital outflow of $ 110.9 million. For Ethereum, that amount reached $ 12.6 million. For Cardano, the flow is on the contrary positive.
It is also for Polkadot ($ 5.5 million). However, ADA takes the lead in this area. However, the token is still far from competing with the first two cryptocurrencies in 2021.
Since the start of the year, Cardano investment products have totaled $ 24 million in institutional assets, compared to $ 4.13 billion for Bitcoin and $ 924 million for Ether.
Cardano would however have a card to play thanks to the rise of environmental concerns unfavorable to the blockchains based on the PoW.
"Cardano has seen the largest inflows at US $ 10 million, which may reflect the active choice of investors in favor of coins based on proof of stake due to environmental considerations," CoinShares analyzes.