On Feb. 3, Cardano conducted a hard fork and successfully integrated the Mary upgrade to the testnet, transforming the blockchain into a multiasset network similar to Ethereum.
This event seems to be one of the reasons for the impressive 475% year-to-date rally of ADA, and the altcoin is now causing unexpected ripples in the derivatives markets.
Since the end of December 2020, ADA's $81-million aggregate futures open interest hiked to the current $580 million, becoming the third-largest derivatives market, behind Bitcoin (BTC) and Ether (ETH).
Data indicates this was not purely a technical adjustment, as Cardano's on-chain and trading metrics vastly outperform Litecoin's (LTC).
ADA futures aggregate open interest. Source: Bybt
A week ago, Litecoin led ADA's open interest by a 50% or higher margin. That all changed over the past five days, as Litecoin's aggregate futures position was cut by 40%.
Despite facing a similar price correction to Litecoin's 30% one between Feb. 20 and 22, ADA had $125-million long contracts liquidations, roughly 19% of the open interest at that time.
ADA trading volume and on-chain metrics strengthen
Volume is the first and foremost indicator of investors' interest. Regardless of the price movement, low trading activity reflects a small user base or a lack of new entrants, which is especially problematic for cryptocurrencies as an emerging asset class.
ADA and LTC 3-day average spot trading volume, USD. Source: Messari Screener
Although starting from a much lower base three months ago, ADA's trading volume soared in February, while Litecoin was unable to surpass the $2 billion daily average mark. Meanwhile, ADA's aggregate spot trading volume at exchanges currently sits at $2.8 billion.
ADA an ...
Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.