The impressive gain in ADA Cardano coin in 2021 raised the market capitalization of the smart contract platform to $ 61 billion. Over the year, the price of the coin increased by 816%. But how far can the project go?
Over the week, the value of the Cardano coin (ADA) has increased by 30%. Cryptocurrency Cardano (ADA) has updated its all-time high at $ 2.19.
Thus, the capitalization has come close to $ 69 billion. The coin is confidently in the top five largest digital currencies according to CoinMarketCap. Observers note that the day before, against the background of the retreat of bitcoin and other major cryptocurrencies, the ADA, on the contrary, showed an upward movement dynamics.
Altcoin interested not only the players of the spot market, but also institutional players. Thus, open interest in futures on Cardano exceeded $ 1 billion. Open interest is a measure of the number of open futures contracts, but they always coincide between buyers (long positions) and sellers (short positions). Given that ADA futures volumes rarely exceed $ 4 billion, this figure of open interest is pretty impressive.
However, this can lead to both growth and large liquidations, and, accordingly, a decrease in price. Therefore, investor sentiment at the moment is not unambiguous. This is similar to the situation that happened on April 17, when the price fell by 23%.
Experts believe that Cardano’s altseason is not over yet, and soon the coin will be able to renew its maximum.
Since the current funding rate is close to zero on most exchanges, this indicates a balanced use of leverage on the buy and sell side. This means that even with a sharp rise in open interest, there is no indication that the derivatives market will trigger a collapse in ADA prices.
Recall that in March, the founder of the cryptobank Galaxy Digital Mike Novogratz asked his Twitter followers to tell him about Cardano. At the end of February, altcoin took the third place in the ranking of digital assets by market capitalization.
A survey by crypto broker Voyager showed that retail investors in the US have more faith in Cardano than in Bitcoin.
Likewise, popular crypto trader Lark Davis recently suggested that Cardano is one of the digital assets that are poised for big profits. The hype around new smart contract platforms will continue to grow, Davis said. Cardano uses a Proof-of-Stake mechanism, but is awaiting its ‘Goguen’ update. It will add support for smart contracts and the issuance of its own tokens. The creation of smart contracts on the Cardano network is likely to spark a boom in new projects that can leave impressive returns to investors.
Cardano price predictions
It looks like analysts and investors are expecting a lot more talk about ADA in the coming days. Because, according to the data obtained, the ADA price is expected to reach very high levels. In fact, investors expect Cardano to grow much more than Bitcoin (BTC) and Ethereum (ETH).
In addition, analysts say the $ 10 price prediction for the ADA is still valid. And the $ 10 will be visible until the end of 2021.