Home Latest Cardano sees largest weekly inflows from institutional managers

Cardano sees largest weekly inflows from institutional managers

380
0

While interest in Bitcoin (BTC) and Ethereum (ETH) has declined, investments in Cardano (ADA) have increased. In addition, the influx of large capital into ADA is observed against the background of an outflow of funds from funds focused on Bitcoin (BTC) and Ether (ETH).

Institutional investment managers bought $ 10 million worth of ADA products over the past week, according to CoinShares.

So, products focused on the Cardano cryptocurrency (ADA) turned out to be the most popular among institutional investors last week.

Funds targeting this altcoin attracted the largest amount of capital, the report emphasizes. Institutionals, on the other hand, withdrew $ 110.9 million from Bitcoin funds. The outflow from ethereum products amounted to $ 12.6 million.

Polkadot Cryptocurrency Products (DOT) raised $ 5.5 million last week. CoinShares analysts stressed that over the past year, Cardano’s investment products received $ 24 million from institutions, while BTC and ETH funds raised $ 4.13 billion and $ 924 million, respectively.

At the moment, ADA is ranked fifth in the ranking of the largest cryptocurrencies according to CoinMarketCap. Altcoin price on the night of Tuesday, May 25, rose to $ 1.58. Over the course of the day, Cardano’s capitalization increased by more than 30% to $ 50.094 billion.

What is Cardano?

The history of the project began in 2015. Cardano is a blockchain system with a decentralized management principle. It originally conceived as an analogue of Ether. The network in question is faster, scales better, and is capable of providing the highest level of security. Now the founders of the project offer investors to invest in the native ADA token, however, in the near future, additional functions will open to developers that can bring the platform to a new level:

– launch of smart contracts;

– creation of dApps-applications;

– development of sidechains.

In the near future, the platform will offer users the ability to create and transfer their own custom tokens. Within the network, transactions will be carried out with a minimum commission.

Why ADA cryptocurrency so rapidly increasing in price?

The upcoming network update is far from the only factor in the fundamental growth in the value of a digital coin. The entire Cardano ecosystem is developing extremely dynamically. The market responds positively to the introduction of new functions.

Cardano has one of the highest levels of social engagement of any crypto project, as Cardano founder Charles Hoskinson knows how to inspire communities.

Today, Ether is a major player in the segment of smart contracts and decentralized applications. However, the Cardano project team is confident that the upcoming updates will make their platform more advanced from a technical point of view than Ethereum 2.0. Indeed, in many respects, Charles Hoskinson has a more advanced blockchain.

In the short term, the ADA token will become more attractive to large market players, which will attract serious institutional investment.

In theory, Blockchain Cardano can be useful to government departments. The developments will be useful for user identification and document management. The cryptocurrency will also be useful for financial infrastructure and big business.

Cardano cryptocurrency price prediction

Sustainable implementation of the roadmap is a guarantee that the long-term uptrend preserved. If the developers continue to follow the plan, then the cryptocurrency will continue to rise in price.

If we talk specifically about the forecasts of quotations, then analysts are also confident in continued growth in value.

Analysts agree that by the end of the year the value of the coin is able to increase by another 10 times. Some analysts predict a rise to $ 10 by the end of this year, and in 2022 the price could rise to $ 22. The main driving force behind this cryptocurrency is the upcoming launch of the network upgrade (Goguen). It will allow platform participants to generate their own tokens, program smart contracts and develop decentralized applications, DeFi protocols.

Previous articleTesla and MicroStrategy slowly losing Bitcoin shine
Next articleTotal crypto market cap gains $400B as DeFi tokens lead the recovery