Cardano (ADA) has recently experienced a significant surge in Exchange Traded Product (ETP) inflows, with institutional investors pouring in capital unexpectedly. This influx of funds has the potential to pave the way for an upward trend in the cryptocurrency market, particularly ahead of the Chang hard fork. CoinShares, a prominent firm in the crypto ETP industry, released a weekly report on July 29 detailing the fund flows of various digital assets. According to the report, digital asset investment products saw an inflow of approximately $245 million in the past week. Among the digital assets that saw new flows, Bitcoin (BTC) topped the list with a substantial increase in inflows, while Cardano recorded a remarkable surge in ETP inflows, marking a 300% jump compared to the previous week.
Cardano’s Rise in the ETP Market
The surge in inflows has positioned Cardano as the second most favored cryptocurrency among all ETPs, with investments totaling $11 million from institutional investors. The month to date inflow for Cardano stands at around $2.4 million, indicating a growing interest from investors in the cryptocurrency. The recent surge in ETP inflows for Cardano comes amidst a broader positive trend in digital assets, with Ethereum Spot Exchange Traded Funds (ETFs) witnessing significant inflows and trading volumes soaring by 542%. The positive market sentiment surrounding Cardano has also been reinforced by the recent Chang hard fork and the deployment of Cardano node 9.1.0.
Market Performance and Analysts’ Insights
Following its surge in ETP inflows, Cardano’s price has experienced a slight rebound from previous bearish trends. After peaking at around $0.8 in March 2024, the cryptocurrency’s price went through a corrective phase, dipping below the $0.4 mark. Despite this correction, Cardano has shown resilience by consolidating around the $0.4 price level during challenging market conditions. Currently, the cryptocurrency is trading at $0.4, reflecting a 4.34% decrease in the last 24 hours.
Industry analysts, such as ‘Sssebi,’ have projected a bullish outlook for Cardano, emphasizing its undervalued status among the top 10 cryptocurrencies. They believe that the cryptocurrency has substantial potential for upside growth, especially during the ongoing bull cycle. Sssebi’s optimism is shared by many in the crypto community, who see Cardano as a strong contender in the market, offering promising investment opportunities for those looking to diversify their portfolios and capitalize on the growing interest in digital assets.
Cardano’s recent surge in ETP inflows marks a significant milestone for the cryptocurrency, highlighting its growing appeal among institutional investors and its resilience in the face of market fluctuations. As the market dynamics continue to evolve, Cardano’s performance and potential for future growth will be closely monitored by investors and analysts alike, shaping the narrative of the cryptocurrency landscape in the coming months.
