- Cardano’s daily transaction volume and unique wallet addresses interacting on the network have dropped consistently.
- The inflow of institutional capital in Cardano has dropped significantly compared to the first half of 2021.
- Cardano emerged as one of the least volatile assets, and analysts have identified a bearish structure in ADA price.
Cardano, popularly known as an Ethereum-killer, has suffered a recent drop in volatility. Ethereum scaling solutions and layer-2 protocols like MATIC and Avalanche have outperformed Cardano over the past two weeks.
Polygon Network and Avalanche outperform Cardano in on-chain activity
As the Hydra upgrade draws closer, proponents expect Cardano to recover from the price drop. However, Cardano’s on-chain activity has dropped, lower than layer-2 scaling solutions. The Ethereum-killer is underperforming when compared to cryptocurrencies in the top 30.
Despite a rise in the percentage of Cardano tokens being staked, there is a dropping interest from retail and institutional investors. The Year-to-date (YTD) inflow of institutional funds in Cardano is $108 million, according to data from CoinShares.
YTD inflows in Ethereum and Solana exceed that of Cardano.
The institutional inflow of funds by asset
According to CoinShares, Cardano led the institutional inflow a week ago. No known catalyst was identified. The inflow has significantly dropped when compared to the first half of 2021.
Proponents have noted a drop in volatility in ADA price as of November 19, 2021. Bitcoin and Cardano emerged as the least volatile assets in the top 5 cryptos by market capitalization. Historically, low volatility is associated with the bearish price trend of an asset.
Volatility of Top 5 cryptocurrencies in October 2021
@GertvanLagen, a cryptocurrency analyst, has evaluated the Cardano price trend and concluded that ADA is currently in the 1-2 correction of the 4-5 wave cycle. If ADA price fails at support, it is likely to plunge further.
$ADA [1W]: Currently price is in the 1-2 correction of the 4-5 wave of this cycle.
— Gert van Lagen (@GertvanLagen) November 20, 2021
Currently there is a wrestle between key support determined by corrective ABC (purple) and key resistance determined by the 0-1 wave(blue).
If failing at support price might wick to lower fibs. pic.twitter.com/vnKBwA9tY4
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.