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ADA Climbs 20% in Fortnight: Decoding the Surge in Cardano’s Value
- Amid market consolidation, Cardano stands out with significant recent gains.
- Analysis reveals ADA is showing bullish trends, with market cap growth and a three-month peak in on-chain activity.
- The “conference effect” theory suggests that market surges often precede crypto conferences, driven by speculation of major announcements.
ADA Likes to Do Its Own Thing
While the market appears to be consolidating after the recent rally, Cardano (ADA) is the only top-ten coin with a significant price increase. ADA gained over 5% in the past 24 hours, while Ethereum (ETH) has dropped over 2.5% in the same period.
Looking at data from CoinMarketCap, we can see that ADA has gained 12.71% in the past week and 24.76% in the past month.
Santiment Reveals Reasons for Price Hike
According to a tweet by Santiment, ADA experienced significant growth and bullish signals. This increase in market cap is a reflection of either an increase in the price of ADA, an increase in the number of ADA in circulation, or both.
The report also points out that on-chain activity, which includes transactions and interactions on the Cardano blockchain, was at its highest in over three months. This heightened activity often precedes or accompanies a price increase, as it indicates heightened use and interest in the blockchain.
Additionally, Santiment notes an uptick in whale transactions, with large volumes of ADA being movedāa three-month high. This is noteworthy because large transactions can influence the market, and increased activity by whales is often watched closely by investors as a signal of potential price movements.
These insights by Santiment imply that the Cardano network is experiencing a surge in both interest and investment, which could be due to a variety of factors such as network upgrades, positive news, partnerships, or overall market trends.
Conferences Move Markets
There is a theory in crypto circles which suggests that crypto conferences move markets. This is based on historical observations that coins often experience a surge in value before such events, likely due to the anticipation of exciting announcements. Typically, there is a significant sell-off post-conference. With the Cardano Summit scheduled for November 2-4 in Dubai, this could be contributing to the recent uptick.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
