Cardano’s Coinbase listing helped raise the open position on futures contracts to over $ 1 billion. This development is a sign that investors are seriously interested in ADA.
The Rise of Cardano
Cardano (ADA) broke the psychological $ 1 barrier to an all-time high of $ 1.50, making an impressive start to the year. The network grew into a multi-wealthy network similar to Ethereum, with an impressive 590% annual gain. All these developments could be a good sign for Cardano’s future.
The final leg of the rally appears to be related to the Coinbase Pro listing announced on March 16, which resulted in a renewed rise to $ 1.47 on March 18.
As Cardano’s price increased, so did the spot trading volume and blockchain transfers that crossed Litecoin (LTC). Increasing interest from investors resulted in the open position of Cardano’s futures contracts to increase fivefold in 2021.
Breaking the $ 1 billion open position barrier is something only (BTC) and Ethereum (ETH) have succeeded in. What’s more, Ethereum had a $ 2 billion open position just three months ago.
Therefore, to really understand whether Cardano deserves the third place in the market capitalization rankings, it is necessary to compare its spot volume and blockchain metrics with other altcoins.
ADA Trade Volume and Blockchain Measures Getting Stronger
Regardless of price movement, low trading activity reflects a small user base or lack of new entries. Therefore, one should expect Cardano’s volume to be in the top 5.
According to Nomics transparent exchange volume, ADA had a trading volume of $ 97.5 billion in 2021, surpassing Polkadot (DOT), Ripple (XRP) and Litecoin.
While this is promising, it is also necessary to look at blockchain metrics to understand whether futures’ open position and spot volume reflect this network activity.
Daily active addresses provide a more detailed view of network usage. However, these data cannot be blindly trusted. The higher the wages, the less incentive there is to inflate the number.
Cardano seems to be definitely different from other altcoins and is reaching 85,000 daily active addresses. Moreover, there seems to be no indication of fabricated figures, as the growth pathway looks organic and is consistent with volume activity.
To verify whether these addresses are active, transfers and transactions, or the total amount of value effectively circulating in each network, must be evaluated.
This time around, Cardano’s strength, the network’s daily transfers and transactions, averaged $ 4.5 billion per day. This amount is at least six times more than the remaining competitors. As such, ADA’s blockchain activity provides some support for its $ 45 billion market capitalization.
Cointelegraph Markets Pro’s VORTECS ™ data also began to identify the ADA’s bullish outlook on March 16 before the recent price hike.
The Cointelegraph exclusive VORTECS ™ score is an algorithmic comparison of past and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements, and Twitter activity.
As seen in the chart above, the VORTECS ™ score rose to 66 on March 16, twelve hours before the Coinbase listing announcement. The cryptocurrency has surged by 18% since the signal emerged, to $ 1.23.
Volumes and blockchain data are important metrics, but Cardano may have a brief window of opportunity to take advantage of the difficulties caused by congestion in the Ethereum network. ADA price can go down unless there are real use cases involving decentralized applications or interconnection bridges working to solve the problem of decentralized finance scaling.
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