ADA Climbs 20% in Fortnight: Decoding the Surge in Cardano’s Value
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 moved—a 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.