Cardano (ADA) is facing institutional inflows as investors withdraw funds from leading altcoin Ethereum (ETH) and leading crypto Bitcoin (BTC).
Ethereum and Solana are running out while Cardano withdraws institutional funds!
According to CoinShares, Cardano is seeing inflows of funds from institutional investors as demand for the network grows after multiple new releases and solutions that place the ecosystem in one category with giants like the leading altcoin Ethereum.
The most interesting aspect of the report is not the presence of increased inflows, but the reallocation rate of institutional funds. As Cardano (ADA) gains more trust among institutions, Ethereum (ETH) and Solana (SOL) are actively depleting.
At the current rate, the volume of ADA held by institutions will exceed Ethereum holdings in the next few months. According to experts, the most likely reason for the outflow of funds from Ethereum (The Merge) is the recent problems with the Beacon chain, which is possible on the main’net after the merge.
Experts point out that security concerns can become a big problem for investors, especially institutions that tend to choose stable investments over speculative investments. The block reorganization may have caused all operations and transactions that took place while existing on the main-net to be copied.
Cardano grows in preparation for summer releases
In a row, Cardano recorded a 368% YTD increase in daily on-chain transactions and network growth increased. According to experts, such a strong increase is linked to the launch of the first decentralized applications and solutions built on the ecosystem.
As we reported on Kriptokoin.com, the biggest and most anticipated update for Cardano is the Vasil Hard Fork, which will implement several CIPs. Experts state that anticipated network upgrades will reduce transaction fees and transaction time, making Cardano one of the cheapest and fastest networks in the industry.
At the time of writing, Cardano was trading at $0.5745, up 2.84% in the last 24 hours and 21.69% in the past week, according to CoinMarketCap data. Ranking 6th in the crypto market with a market cap of $19.4 billion, Ethereum rival reached an all-time high by reaching $3.10 about 9 months ago. However, the altcoin has since lost value and is currently 81.5% away from its peak.
Cardano users will discover the Djed stablecoin trial
According to a recent announcement by the Milkomeda team, Cardano users will soon be able to test it on the Milkomeda test-net of the Djed stablecoin. The team said it will make a test-net version of Djed available on the Milkomeda test-net, thus allowing users to explore the algorithmic stablecoin. Milkomeda is an Ethereum Virtual Machine (EVM) compatible side-chain that enables developers to achieve cross-chain interoperability between Cardano and Ethereum
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