Cardano (ADA) Experiences 11% Growth in Two Weeks Leading Up to Shanghai Upgrade

Cardano, a Layer 1 Proof-of-Stake network, is highly valued for its scalability and low transaction costs. Its native token, ADA, has seen a remarkable 63% performance year-to-date, and the network’s Total Value Locked (TVL) has surpassed $100 million within the same time frame.

Over the past month, Cardano has experienced mostly positive financial metrics. The 63% increase in price can be attributed to the growing activity on several ADA-native DeFi protocols.

Since the start of the year, Cardano’s TVL has grown by 100%. The price of ADA saw its biggest jump in the first week of February after Cardano TVL surged amid a somewhat negative investor sentiment in the Ethereum community. TVL is a measure of the total value of cryptocurrency locked in a smart contract, and the price of the Layer 1 token often rises with an increase in TVL.

However, the flat ETH sentiment, caused mainly by investors anticipating the Shanghai upgrade, has boosted Cardano’s (ADA) price. From January 11 to February 2, 2023, the total open interest in ADA on major exchanges increased from $160.98 million to a high of $195.32 million.

This surge in open interest was observed when the Ethereum development community announced that the Shanghai upgrade, originally scheduled for September 2023, would be taking place in March 2023.

The increase in this signal is often interpreted as a bullish indicator, which suggests that more derivatives contracts are being created. In the coming weeks, experts predict that the recent growth in Cardano’s Total Value Locked (TVL) and open interest will lead to further growth for the ADA token.

According to data from Dune Analytics, the estimated value of ETH tokens that will be unstaked is close to $19 billion. Many investors have turned to the Cardano ecosystem for yield-farming chances in the current bull run.

Cardano’s ADA on the Rise

Cardano’s trade volume increased 26.88% in the past 24 hours, as reported by CoinMarketCap. Its current price stands at $0.3632, outpacing the overall market growth of 1.5%. Over the past two weeks, Cardano has experienced an 11% increase in price and a staggering 35% growth over the past thirty days.

ADA’s 30-day moving average (red) is on the brink of surpassing the 200-day moving average (blue), a positive sign for the altcoin’s growth. If the red line successfully moves above the blue line and forms a golden cross, ADA may be in store for further gains.

Additionally, the price of ADA has also benefited from the debut of the Cardano-based stablecoin – Djed last week. The introduction of Djed has increased demand for ADA, which is one of the primary reserve tokens for the new algorithmic stablecoin.

With Djed’s reserve already having removed 30.5 million ADA from circulation, the demand for ADA continues to increase while its supply decreases. It’s worth noting that Djed’s current supply is only $2 million, leaving room for significant growth in the future.

Djed’s impact on Cardano’s adoption is just the beginning. The cryptocurrency industry has been seeking a reliable stablecoin since the downfall of Terra in May, and Djed appears to fill this gap.

Can the Net-Deflationary Supply of Ethereum Stop the Rise of Cardano?

The uncertainty surrounding the Ethereum ecosystem and the recent launch of Djed have contributed to Cardano’s remarkable rally. However, investors are concerned about a possible 11 million ETH dump as part of the Shanghai upgrade, which would allow Ethereum PoS validators to withdraw their funds.

Cardano and other Layer 1 PoS networks are considered formidable competitors to Ethereum PoS. Hence, the newly implemented burn mechanism is worth observing with regard to the current net-deflationary supply trend of Ethereum.

These Popular Altcoins Are Now Dominating the Cryptocurrency Market

GRT is the native token of The Graph, an indexing protocol for organizing blockchains built on the Ethereum network using the ERC-20 standard. Since peaking at $0.232 on February 7, The Graph’s (GRT) price has decreased. It produced two consecutive bearish signals, resulting in a minimum price of $0.156 on February 10. After that, the token showed clear signs of recovery and is currently trading at 0.16, 33% below its high from February 7.

The price of Frax Share (FXS) has been on an upward trajectory after breaking past the $7,500 resistance level in mid-January; this has resulted in an impressive peak of $11.73 on February 10.

Last week, SingularityNET (AGIX) experienced the largest price increase among all cryptocurrencies. It has seen a significant increase since the start of the year and reached a new record high of $0.671 on February 8th. However, on that same day, it also showed a bearish signal and has been declining since. As of February 10th, AGIX is trading at $0.415.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due dil

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