Cardano (ADA) has experienced a remarkable 300% surge in Exchange Traded Product (ETP) inflows, driven by an unexpected influx of capital from institutional investors. This influx could signify a potential uptrend ahead of the much-anticipated Chang hard fork.
On July 29, CoinShares, a leader in the crypto ETP industry, released a weekly report detailing fund flows of various digital assets. According to CoinShares, digital asset investment products saw a relatively subdued inflow of approximately $245 million in the past week. Among the highlighted assets, Bitcoin (BTC) saw the most significant increase, capturing an inflow of $519 million and reaching month-to-date inflows of $3.6 billion.
However, the standout performer was Cardano, which witnessed an inflow into its ETP of roughly $1.2 million. This impressive inflow marks a staggering 300% increase from the previous week, elevating Cardano to the second position among all crypto ETPs. CoinShares provided a detailed chart showing that institutional investors have funneled a total of $11 million into Cardano-focused investment products. Furthermore, Cardano’s month-to-date inflow stands at around $2.4 million.
CoinShares also highlighted that the launch of Ethereum Spot Exchange Traded Funds (ETFs) attracted substantial inflows, marking some of the highest since December 2020. These newly issued ETFs saw an influx of $2.2 billion, considerably boosting Ethereum (ETH) trading volumes by 542%.
In the specific case of Cardano, the 300% surge in ETP inflows resulted in a slight rebound in its price from previous bearish trends. Although Cardano surged to approximately $0.8 in March 2024, its price has since corrected, now sitting below the $0.4 mark. The ongoing Chang hard fork, following the deployment of Cardano node 9.1.0, has fostered a more positive market sentiment surrounding the cryptocurrency. Analysts like ‘Sssebi’ on X (formerly Twitter) have identified Cardano as the most undervalued asset among the top 10 cryptocurrencies, urging investors to remain bullish and forecasting potential upsides for ADA.
Despite witnessing continual price declines in recent months, Cardano has managed to steady around the $0.4 level, showcasing resilience in adverse market conditions. CoinMarketCap data indicates that Cardano is currently trading at $0.4, reflecting a 4.34% decrease over the last 24 hours.
Analysts, such as Sssebi, continue to predict a favorable outlook for Cardano, anticipating future price rises during the next bull cycle. According to Sssebi, Cardano is poised for significant growth, bolstered by its thriving ecosystem of hundreds of Decentralized Applications (DApps). The ADA price chart from Tradingview.com indicates that while the price is grappling to maintain the $0.4 level, the prospects remain optimistic amid an evolving market landscape.
