Cardano (ADA) has recently experienced a significant surge in Exchange Traded Product (ETP) inflows, with institutional investors injecting a substantial amount of capital into the cryptocurrency. This unexpected increase in investment could potentially set the stage for an uptrend in the near future, particularly with the upcoming Chang hard fork.
According to a report released on July 29 by CoinShares, a prominent firm in the crypto ETP industry, digital asset investment products saw a relatively muted inflow of around $245 million in the last week. Among the list of digital assets that saw new flows, Bitcoin (BTC) recorded the highest increase in inflows. The pioneer cryptocurrency received a healthy inflow of $519 million, with a month-to-date total of $3.6 billion. In comparison, Cardano witnessed a surge in inflows into its ETP, amounting to approximately $1.2 million. This surge represented a staggering 300% increase from the previous week and positioned Cardano as the second-highest cryptocurrency in terms of ETP inflows.
CoinShares’ “Flows by Asset” chart revealed that institutional investors have collectively invested $11 million in Cardano-focused investment products. Additionally, Cardano has seen a month-to-date inflow of approximately $2.4 million. This significant influx of capital from institutional investors indicates a growing interest in Cardano and its potential for future growth.
Market Impact and Sentiment
Following Cardano’s 300% surge in ETP inflows, the cryptocurrency’s price experienced a slight rebound from previous bearish trends. After reaching a peak of around $0.8 in March 2024, Cardano’s price underwent a corrective phase, falling below the $0.4 mark. However, with the Chang hard fork underway and the deployment of Cardano node 9.1.0, market sentiment towards the cryptocurrency has become more positive. Analysts, such as ‘Sssebi’ on X (formerly Twitter), have identified Cardano as the most undervalued asset among the top 10 cryptocurrencies and have advised investors to adopt a bullish stance on the cryptocurrency, anticipating further price increases.
Price Consolidation and Outlook
Despite facing consistent price declines in recent months, Cardano has managed to consolidate around the $0.4 price level, demonstrating the cryptocurrency’s resilience in unfavorable market conditions. Current CoinMarketCap data shows Cardano trading at $0.4, indicating a 4.34% decrease in the last 24 hours. Analysts like Sssebi continue to express optimism about Cardano’s future, expecting price growth during the ongoing bull cycle.
The surge of Cardano ETP inflows and the growing interest from institutional investors highlight the cryptocurrency’s potential for significant growth in the foreseeable future. With positive market sentiment following the Chang hard fork and ongoing price consolidation, Cardano appears to be well-positioned for a potential uptrend. Investors and analysts alike are optimistic about Cardano’s prospects, emphasizing the cryptocurrency’s resilience and strength in the face of market fluctuations.
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