Cardano’s price has been on a roll this week as the currency started with a fresh increase from the $0.850 support zone and had a bullish rally breaking the $0.88, $0.95, and then $1.0 resistance level.
The bulls also ventured towards $1.15 and $1.22 levels in the early hours today. ADA, the native token on the eponymous proof-of-stake blockchain, rose nearly 30% in the last seven days.
At the press time, Cardano is trading at $1.23 with an increase of 2.17% in the last 24hrs accompanied by market capitalization that stands at $41 billion. ADA has also outperformed Ripple (XRP) and Ethereum (ETH) in terms of price.
Cardano Gains Traction From Institutional Trading!
The recent data suggest that increased institutional trading has fueled the price rally. In a recently launched Grayscale fund, Cardano has nearly a quarter of weightage.
As per the data provided by IntoTheBlock, a blockchain researcher, Monday’s 99% of ADA’s total on-chain volume consisted of large tractions. As per the researcher, there were large transactions above $100,000, and says this figure indicates the level of institutional interest for the token. In 2022, ADA has seen a jump of 50-fold in terms of large transaction volume.
ADA To Follow Bitcoin!
It looks like ADA will follow Bitcoin’s bull rally. Bitcoin, which has a similar volume pattern in terms of large transactions, and is experiencing a bull rally, ADA could also see a price explosion similar to that of Bitcoin.
Bitcoin saw a tenfold price jump between 2020 and 2021 largely influenced by major trading houses that entered crypt space.
It looks like the increased interest in the largest PoS network by market capitalization, ADA, has fueled the token price . Proof-of-stake uses less energy when compared to proof-of-work.