CoinDesk Analysis Team
CoinDesk
Cardano (ADA) followed many layer 1 tokens and posted gains during the Asian trading hours on Thursday.
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Cardano rose 7% soon after Coinbase restarted withdrawals on Wednesday. Traders started facing withdrawal issues last week.
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Sentiments in Asia were further buoyed after Hong Kong’s central bank, Hong Kong Monetary Authority (HKMA), seemed to provide an open ear to crypto stakeholders in a new discussion paper.
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Cardano was trading at $1.30 by mid-day Hong Kong time, up 6% in the past 24 hours, according to CoinGecko.
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Other layers 1 token, such as Solana (SOL), also posted gains of up to 10% in the past 24 hours.
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Layer 1 refers to individual blockchains, such as Ethereum or Solana, over which developers can build applications and services.
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Reports of Cardano traders facing difficulties withdrawing their tokens from Coinbase spooked the market last week, pushing Cardano down to $1.11 from a late December high of $1.60.
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Traders were also relieved that HKMA appeared to have an open mind to crypto as its Chief Executive solicited stakeholder feedback to build a “risk-based, pragmatic and agile regulatory regime." Hong Kong’s regulators were seen as hostile to crypto in the past
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March Zheng, a Shanghai-based partner at China’s Bizantine Capital pointed to a continued correlation between a bullish stock market and rising crypto prices in a comment to CoinDesk.
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Zheng said that this extends beyond layer 1 tokens to the bitcoin and ether markets, and says the fund is considering re-entering based on institutional buying volumes of those assets.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
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