Cardano (ADA), the eighth-largest cryptocurrency by market capitalisation, has experienced an impressive rally, posting a remarkable 20% gain in the past ten days.
On Monday, ADA reached the $0.30 milestone, a level not seen since August. These substantial gains are part of the broader cryptocurrency market’s resurgence, which has been spearheaded by Bitcoin in the latter half of October, signalling growing investor optimism.
While the crypto community has closely followed Cardano’s price surge, recent insights have revealed additional factors contributing to its recent ascent.
What are the Factors Contributing to the Surge?
Earlier today, Santiment, an on-chain analytics firm, tweeted that Monday witnessed the highest number of older wallets moving ADA since April 2022, indicating a resurgence in coins entering circulation. However, this may not solely signify profit-taking, as the firm introduced an interesting perspective.
Santiment noted that wallets holding between 100,000 and 10 million ADA accumulated an impressive 43.71 million ADA in just two weeks. This substantial accumulation not only demonstrates renewed investor confidence but also highlights their belief in Cardano’s long-term potential.
In addition, Messari, another crypto analysis firm, shared a compelling report on Monday, revealing that Cardano’s Total Value Locked (TVL), a crucial DeFi metric, remained stable quarter-over-quarter while experiencing a remarkable 198% increase year-to-date.
Cardano’s TVL ranking among all networks also significantly progressed, climbing from 34th place in 2023 to 15th. This growth in TVL underscores the growing demand for DeFi applications on the Cardano blockchain.
The Cardano Ecosystem
Within the Cardano ecosystem, there has been a hive of activity. Project Catalyst Fund10, supported by the Cardano Treasury, has successfully funded 192 projects from a pool of 50 million ADA, further energising innovation and development within the Cardano community.
Notably, the Voltaire governance phase has gained momentum with the launch of two significant projects, SanchoNet and Intersect. SanchoNet, a testnet for on-chain governance, aims to improve Cardano’s decentralised decision-making processes. Intersect is a Cardano member-based organisation dedicated to strengthening the community’s influence on the network’s future.
In addition, Messari reported that since its launch, Mithril, a stake-based signature scheme and protocol designed to enhance node syncing times, has seen nearly 100 stake pool operators (SPOs) participating in signing certificates. This innovation holds the promise of improving the speed and efficiency of the Cardano network.
Cardano’s recent resurgence, driven by its strong price performance and robust ecosystem development, has sparked a fresh wave of optimism within the Cardano community. Notably, famous crypto analyst Austin Hilton has expressed confidence in ADA surging approximately 10% by mid-November.
As of the latest update, ADA was trading at $0.300, with a 0.28% increase in the past 24 hours.