Recently, both institutional and retail investors have shown an increasing interest in Cardano. It is fast becoming the coin of choice for investors who are in crypto for the long term. Good news trots behind the coin as Cardano released a roadmap for the Alonzo hard fork that is scheduled to take place in the second quarter of the year 2021.
Staking volumes have increased tremendously as the hard fork draws near. And so far, there has been over $31 billion worth of ADA staked ahead of the hard fork. Cardano is a proof of stake blockchain and thus requires less energy to mine than the other top coins in the market.
The energy footprint of Cardano is negligible in this regard and thus individuals and institutions who are worried about the mining footprint that the mining of coins like bitcoin and ethereum leaves seem to find safe haven in this coin. Cardano boasts of the highest number of staked coins, ahead of Ethereum, with over 70 percent of the entirety of ADA supply currently staked.
Institutional Investment In Cardano
Cardano has so far drawn in over $24 million in institutional investments. Data shows that Cardano investment funds have attracted more investment funds than most other digital assets in the crypto space. With Bitcoin and Ethereum leading the charge of where institutional investors choose to empty their pockets.
The interest in the coin from institutional investors comes with the rising popularity of Cardano amongst retail investors. The project’s coin which is named ADA is currently ranked as the number 5 coin in the crypto space.
Grayscale, a known leader of crypto investors, announced earlier that they had included Cardano in their crypto trusts. The coin became the investment’s firm third-largest crypto holding. Making up about 4.26 percent of their entire crypto holdings.
ADA price trading at $1.30 | Source: ADAUSD on TradingView.com
The coin has a current circulating supply of 32 billion and a 24-hour daily trading volume of $1.2 million. The price of ADA currently sits at $1.30 per coin.
The relatively low price of the coin has been one of the driving factors of interest in the coin so far. The coin which trades for a little over a dollar shows tremendous purpose and if speculations are right, then Cardano would see investors getting returns in the thousands once the coin takes off.
The continuous work being done on the coin shows the commitment of the team to the project. The efforts of the team have been enough to impress Ethereum founder Vitalik Buterin, who commended the project for the interesting ideas that are being implemented.
ADA Beats Out Bitcoin To Be Most Held Crypto On eToro
Popular crypto exchange earlier in the month released stats that showed that Cardano’s coin ADA has become the most held coin on the cryptocurrency exchange. Beating out bitcoin and ethereum to claim the top spot on the exchange.
This showed a 51 percent increase in the amount of ADA being held on the exchange by users. Pushing top coin bitcoin from first place to second place.
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This increase was attributed to the increased growth and use case potential for Cardano’s coin ADA, and this had clearly provided plenty of attraction and motivation for investors to move into the project.
A lot of this is attributed to investors searching for the next bitcoin. This search has led to more interest in smaller and cheaper coins like ADA where the investors see a lot of potential and what could possibly be the next coin to replicate bitcoin’s success in the market.
Featured image from Investing.com, chart from TradingView.com