Cardano, which has risen over 30% in a short time in the past weeks, has attracted all eyes in the altcoin market. Now, ADA Whale, a Twitter account dedicated to the Cardano community, says this momentum is due to other factors.
Cardano sees institutional investment due to these 4 factors
ADA Whale has listed some catalysts in addition to the optimistic expectations regarding the upcoming Vasil hard fork. The popular Twitter account also cites other causes such as “on/off chains, faulty staking mechanisms, VC investments and leveraged chaos in the market.”
Crypto lending platform BlockFi confirmed on Thursday that troubled crypto hedge fund Three Arrows Capital is liquidating its clients amid reports that it has failed to meet margin calls. Three Arrows Capital, or 3AC, the best hedge fund in the industry, is known to be on the brink of failure after $400 million liquidation.
According to Blockchain analytics firm Nansen, who commented on these reports, “leveraged chaos” currently reigns in the market, as ADA Whale points out. 3AC’s lenders reportedly continued to stand out as the $10 billion asset-managing fund failed to make margin calls and liquidated Bitcoin holdings in March.
Cardano takes on the role of safe haven amid the turmoil in the altcoin market
Problem lending platform Celsius halted all withdrawals on Monday, highlighting the already fragile market. The value of the company’s assets has fallen by more than half since October. This raised questions about the company’s inability to pay. The value of the CEL price depreciated by 97% in the same period.
Alongside the institutional money coming out of Bitcoin and Ethereum, Cardano had the only positive inflows last week. As Kriptokoin.com , we have transferred the details in this article.
Coinshares recorded negative outflows of $102 million during the previous week. $57 million of this came from Bitcoin. Thus, the company’s monthly outputs reached $91 million. Ethereum’s total outflows during the year reached $387 million, with approximately $41 million.
Cardano price analysis
According to CoinMarketCap data, the total market cap of the market has dropped below $1 trillion. The cryptocurrency market had surpassed this threshold in late 2020. At the time of writing, it stands at $895 billion. Cardano, which fell to $0.4366 before recovering a bit, is also down 17% from the previous week. The Cardano team claims that the final stages of planning for the Vasil hard fork update have been completed. This update was effective in finding new investors for the altcoin project.
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