Cardano (ADA) witnessed a massive 300% increase in Exchange Traded Product (ETP) inflows. The unexpected influx of capital from institutional investors could set the stage for a potential uptrend ahead of the Chang Hard Fork.
Cardano inflow skyrockets 300%
On July 29, CoinShares, a leading crypto ETP company, released a weekly report report at the fund flows of various digital assetsAccording to CoinShares, digital asset investment products saw a relatively muted inflow of approximately $245 million over the past week.
Related Reading
Among the list of digital assets that recorded new flows, Bitcoin (BTC) recorded the highest increase in entries. The pioneering cryptocurrency experienced a healthy inflow of $519 million, bringing its cumulative inflows for the month to $3.6 billion.
Most impressive, Cardano has seen a surge in inflows into its ETP, totaling approximately $1.2 million. This massive inflow represents a whopping 300% increase from the previous week. Furthermore, Cardano’s strong performance effectively placed it in second place among all crypto ETPs.
Sharing a “Flows by Asset” chart of Cardano and several other prominent cryptocurrencies, CoinShares reports that institutional investors have invested a total of $11 million in Cardano-oriented investment products. Furthermore, Cardano’s monthly inflow to date has been around $2.4 million.
During its report, CoinShares also revealed that the Launch of Ethereum Spot Exchange Traded Funds (ETFs) witnessed some of the largest inflows since December 2020. This also saw newly issued ETFs experience impressive inflows of $2.2 billion, while trading volumes at Ethereum (ETH) increased by 542%.
In the case of Cardano, after the 300% increase in ETP inflows, the price of the cryptocurrency witnessed a slight recovery from previous downtrends. After rising to around $0.8 in March 2024, the price of Cardano was going through a corrective phaserefusing below the $0.4 price mark.
As Chang Hard Fork after the ongoing Cardano node 9.1.0 deployment, the market sentiment around cryptocurrency has been a bit more positive. Analysts like ‘Sssebi’ on X (formerly Twitter) deduced that Cardano was the most undervalued asset among the top 10 cryptocurrencies. The analyst disclosed that investors should remain bullish on Cardano, predicting upside for the cryptocurrency.
Update on ADA Pricing Analysis
Despite experiencing constant drops in its price In recent months, Cardano has steadily consolidated around the $0.4 price levelhighlighting the cryptocurrency’s strength and resilience during unfavorable market conditions. CoinMarketCap reports reveal that the cryptocurrency is currently trading at $0.4, reflecting a 4.34% drop in the last 24 hours.
Related Reading
Analysts like Sssebi continue to to maintain The optimistic outlook for the cryptocurrency, anticipating future price increases during the bull cycle. According to Sssebi, Cardano is expected to outperform the crypto market, catalyzed by its expanding ecosystem consisting of hundreds of decentralized applications (DApps).
Featured image created with Dall.E, chart from Tradingview.com