Cardano's ADA token has witnessed a staggering 80% surge in derivatives trading volume over the past 24 hours, marking a significant shift in market dynamics, as reported by Coinglass. The data reveals a substantial increase in the trading volume of open-ended futures on ADA, totaling nearly $700 million within the specified period.
Expanding the scope to include spot market transactions, the overall trading volume for Cardano's token has exceeded an impressive $1 billion in the last day alone.
This surge in trading activity represents 6.25% of Cardano's total market capitalization, indicating a normative level of engagement. Currently holding the position of the eighth largest digital asset with a market capitalization of $16.16 billion, Cardano continues to be a prominent player on the cryptocurrency market, according to CoinMarketCap.
However, amid the surge in trading volume, ADA experienced a notable 9.5% drop in the past 24 hours, reaching its lowest value since December at $0.4521. This zone has historically served as a bottom for Cardano, witnessing multiple instances of recovery after prolonged falls, notably in the spring and summer of 2022.
Interestingly, the majority of liquidations in ADA trades within the last 24 hours, amounting to 95.24%, were associated with long positions. This suggests that while many bullish traders anticipate a potential bottom in ADA's price, the increased appetite for risk and the inherent unpredictability of the crypto market are tempering these expectations.