A lot of volatility in the cryptocurrency market has hit the’most developed’ Cardano blockchain platform. The investors have shown optimism despite the low cash flow of the deals. The narrative, however, appears to be changing as the blockchain experiences Vasil hardfork hype.
It is Time to Make Some Money
Since its introduction, ADA, the sixth largest cryptocurrency by market cap, has experienced a meteoric rise in trading volume. The future profitability of ADA had not yet shown a promising case for its supporters, however. The alternative token did not attempt to break through the $1 threshold despite network optimism.
Statistical evidence now suggests a different path for this case to take. First, during the time this was published, the price of ADA increased by 3%, to a level near $0.56.
Despite the fact that the price of ADA has increased by over 22% in the past three weeks, the sentiment indicator on the analytic platform Santiment has suddenly flashed a positive number. Also, the mood surrounding ADA has been the most upbeat it’s been since April’s trading sessions. The ratio of losses to profits also continued to rise, reaching its highest point since March.
On August 16th, the analytic platform Glassnode tweeted about the new events. It reported that the proportion of on-chain transactions that resulted in a profit versus those that resulted in a loss had remained at its highest level since the last week of March.
Despite these highs, investors should not get complacent. The likelihood of a price correction in the near future increases as the ratio of taking profits rises. This is why investors must continue to exercise caution.
Positive Results Every Time
Still, there was optimism on the network as Cardano’s rise propelled the altcoin to the sixth spot in the crypto ranking by market cap (Coinmarketcap data). As a result, ADA is now the second most popular token after XRP for sending money abroad.
What’s more intriguing is that the mentioned momentum persisted even after developers argued over the controversial update. As an illustration, Cardano’s social dominance has recently undergone a decisive turnaround, following a downturn.
The ‘wealthiest’ ADA addresses also saw a 0.17% increase in their balances over the past three months. Three days ago, they held roughly 28.98B Cardano coins, and that number hasn’t changed much.
The question is whether or not that will be enough to push the alternative token past $1. No, not at all. The only way for ADA to really take off is if the market as a whole starts to rise. Furthermore, buyers need to guarantee large price increases to push the alternative currency past the key $1 level.