Main navigation

Cardano Attracts More Institutional Investors as On-Chain Transaction Volumes Increase 50 Times

News
Tue, 03/29/2022 - 14:20
article image
Arman Shirinyan
Institutions are coming to the Cardano network as the transaction volume increases massively
Cardano Attracts More Institutional Investors as On-Chain Transaction Volumes Increase 50 Times
Cover image via stock.adobe.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

According to data from IntoTheBlock, ADA just faced an inflow of institutional funds to the network as the on-chain transaction volume faced a 50-time increase, reaching 69 billion.

Increased demand on the Cardano network was most likely tied to the general growth of the network as its TVL exceeded $300 million, total market capitalization broke through $40 billion and the price hit a two-month high.

According to additional data provided by IntoTheBlock, the number of large transactions with volumes exceeding $100,000 jumped by 50 times. The total volume of funds removed on March 28 consisted of large transactions by 99%.

What does large institutional volume mean?

Such a rapid increase in institutional volume is reflecting the increased fundamental value of the project. Since the beginning of the year, developers working on the Cardano network released and actively developed new use cases for the blockchain, like peer-to-peer exchange and EVM-compatible Layer 2.

With the release of new solutions on the chain, Cardano becomes more relevant for institutional investments that often look for real value behind the project rather than speculative returns.

Related
Cardano (ADA) Beats Solana, Aave and Terra as Market Capitalization Reaches $40 Billion

In analogy with Ethereum’s path on the market, experts expect a rapid increase in Cardano's capitalization and number of users. The theory speaks of the increase in transactional volume, number of holders and total value locked in various smart contracts.

Previously, Cardano's TVL exceeded $300 million while staying at around $100 million at the beginning of the month. Almost a three-time increase was caused by a series of decentralized app releases like Minswap and others.

Related
MicroStrategy Subsidiary Borrows $205 Million from Silvergate Bank to Buy Bitcoin

In terms of the market capitalization and price, ADA saw at least a 50% increase compared to the beginning of the year.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.