While the majority of the top-tier assets on the cryptocurrency market are struggling under unseen selling pressure, projects like Cardano are feeling relief as they avoid a massive plunge down and even show significant growth in assets like Ethereum and Bitcoin.
ADA gains 75%
Unexpectedly, Cardano easily beat top-tier digital assets like XRP, ETH and BTC, thanks to the lack of leveraged positions open on the market and lower institutional exposure, as they appeared to be two main reasons behind the strong plunge of the market.
Both neutral performance on the ADA/USD pair and a plunge below $900 for Ethereum is fueling the 75% gain. The strongest plunge on Ethereum since 2020 helps with ADA's short-term rally against major players on the market.
25% against Bitcoin
While Ethereum's massive sell-off is the biggest support for ADA, Bitcoin's 32% drop in value caused only a 25% return for Cardano, which does not make it the best hedge against the cryptocurrency market but still a better option than holding large caps like BTC or ETH.
While ADA's growth is mostly tied to the lack of exposure to institutional funds that are being liquidated, industry experts are also highlighting the fundamental wellness of the network, which is receiving a massive amount of updates and releases this summer, including Djed stablecoin, Vasil hard fork and others.
With the constant updates and relatively low pressure from investors because of the low-leveraged nature of the asset, Cardano has all the chances of being among the leaders when the cryptocurrency market sees new funds inflows. This may take another couple of years, especially with the hawkishness of the Fed.