Cardano (ADA) experienced a significant surge of 5% within 24 hours, resulting in a $1 billion increase in its market cap, which now stands at $15.6 billion. With a weekly gain of 19%, ADA has emerged as one of the top-performing cryptocurrencies recently.
However, analysts remain cautious about the rise of cryptocurrencies like Cardano and Polkadot, as it often signifies an impending bear market. While Cardano is one of the largest cryptocurrencies in terms of market cap, it is not known for its price surges. Nevertheless, it has been one of the standout performers in the past week. With a gain of 18.83% in the last seven days, it ranks as the second-best performing crypto in the top 20, surpassed only by Avalanche. In the past day alone, it has added over $1 billion to its market cap.
As of now, ADA is trading at $0.4434, registering a 3.33% gain in the past 24 hours. With a market cap of $15.67 billion, it ranks as the eighth-largest cryptocurrency, just ahead of Dogecoin at $13 billion. Over the past 36 hours, ADA has seen a $1.6 billion increase in its market capitalization.
One of the notable metrics during this period is the surge in transaction volume for ADA. Within 24 hours, the volume soared by 27% to reach $764 million, indicating high demand among traders. This volume surpasses that of Chainlink, Polygon, Shiba Inu, and Litecoin.
The increase in transaction volume is attributed to the influx of whales and institutional investors. In December, the number of “large transactions” averaged above 7,000, compared to an average of around 5,000 in November. This surge suggests a growing interest in ADA from institutional players and whales, usually preceding price spikes.
Despite the positive momentum, some analysts advise caution. They argue that peripheral tokens like ADA and Polkadot’s DOT tend to join the bull market wave late, and their price increases often indicate the end of a bear market. Polkadot, for instance, gained 16.8% in the past week.
Nevertheless, ADA continues to thrive. Profitable ADA addresses have reached their highest levels since the bull market of 2021, indicating sustained growth. This success can be attributed to Cardano’s robust development by Charles Hoskinson and his IOG team, as well as the support of a passionate global community.
The ongoing improvements in the protocol have instilled confidence in Cardano’s future, as evidenced by the increasing total value locked (TVL) on the Cardano network. According to data from DeFiLlama, the TVL has been on an upward trend throughout the year, with minor dips in June and September. Currently, over $300 million worth of ADA is locked on the Cardano network.
However, some analysts remain skeptical of ADA. Lady of Crypto, with her 45,000 YouTube subscribers, highlights that Cardano’s structure leads to slow and systematic updates that take several months to implement, in contrast to networks that move at a faster pace.
To learn more about Cardano, you can refer to our recommended resources, such as the Cardano Guide, Cardano Wallet Tutorial, and the 24-hour Cardano Price. Additionally, you can find more news and information about Cardano on our website.