TL;DR
- ADA has witnessed a notable rally as of late, driven by a broader crypto resurgence and other essential factors.
- Over 60% of ADA holders now sit on paper profits, a significant improvement from August’s lows, when almost 90% were underwater.
ADA Keeps Rallying
Cardano’s ADA has been among crypto’s best performers in the past week, with its price exploding by approximately 93%. In fact, Dogecoin (DOGE) is the only one from the top 20 list registering more significant gains for the aforementioned period.
ADA continued its uptrend in the past 24 hours and is currently trading at around $0.64, a level last observed in March this year.
Perhaps the most obvious factor contributing to its bull run is the recent announcement coming from Cardano’s founder Charles Hoskinson. A few days ago, he published a 40-minute long video, discussing multiple topics, including the incoming administration of the newly-elected President Trump.
Hoskinson revealed intentions to dedicate significant time next year to collaborating with US policymakers to help build a more comprehensive and potentially favorable regulatory framework for the cryptocurrency industry.
“The crypto policy should be written by the American people, by the American crypto industry, and by well-meaning lawmakers who are willing to take the time to listen.”
The second element is the overall crypto resurgence. Several hours ago, Bitcoin (BTC) touched a record $90,000, while the sector’s global market cap pumped to a new all-time high of $3.12 trillion.
ADA’s rally coincides with the rising total value locked (TVL) on the Cardano ecosystem. On November 12, the figure exceeded $350 million, the highest in seven months, which is to be expected, given the increase in price. However, data shows that the amount in ADA remained unchanged, meaning no fresh funds were added to the system.
Cardano’s on-chain trading volume has also been on the rise lately. On November 10, it reached an eight-month peak of over $355 million.
Profitability Goes Up
ADA’s price revival has been highly beneficial for its investors. According to IntoTheBlock’s data, over 60% of the total holders are currently sitting on some paper profits. 38% are still below their initial investments, while only 1% are break-even.
The profitability remains relatively low compared to other leading cryptocurrencies. For example, no BTC, DOGE, and TRX investors are underwater (as of the moment of writing these lines).
However, the picture looked much worse during the crypto market crash at the beginning of August this year. Back then, almost nobody holding ADA was sitting on paper profits as the asset’s valuation collapsed under $0.30.
The post The Reasons Why the Cardano (ADA) Price is Up Almost 100% in a Week appeared first on CryptoPotato.