Cardano Surges as Bitcoin Nears $100K: Whales Drive ADA to $31 Billion Market Cap

As bitcoin (BTC) approaches $100,000 for the first time (it crossed $99,000 earlier Friday), capital is shifting to alternative cryptocurrencies which generated a buzz in the broader crypto market.

Cardano (ADA) has amassed an astounding $29 billion market capitalization in recent weeks, thanks to a steady surge. The price of ADA broke above its two-year high of $0.8 trading with significant bullish price movement. There is high anticipation that the token would reach $1 before the end of 2024.

Cardano’s remarkable climb has sparked interest from whales and investors.

It has remained strong despite Bitcoin’s range-bound fluctuations in recent weeks. Onchain data also imply increasing whale activity, which has resulted in Cardano’s (ADA) current price spike.

Cardano’s ADA Soars Over 10% as Whales Fuel Market Surge 

The price of ADA, the native token linked to the Proof-of-Stake Cardano blockchain, has risen 11.5% in the last 24 hours. It was being traded at 80 cents on midday Friday on Coinbase and other exchanges.

The token increased by 43.28% this week which increases the month-to-date gain to 140.78%. This has pushed the token’s market capitalization to $30.7 billion, making it the world’s tenth-largest digital asset. Whales are continually collecting ADA in anticipation of cryptocurrency-friendly legislation during Trump’s presidency, which caused the spike.

On-chain activity confirms the engagement of whales and institutions and that this rally may have lasting force. According to statistics from analytics firm IntoTheBlock, the number of major ADA transactions has surged by 300% over the last two weeks.

According to Tagus Capital, whales currently hold more than $12 billion in ADA. Tagus capital further stated that some of this momentum comes from a positive shift in sentiment. The sentiment is positive owing to Cardano’s founder, Charles Hoskinson, who hinted at future collaborations with the Trump administration for crypto-friendly regulations.

The latest price increase has resulted in around $52.2 billion in ADA transaction activity. Many users and analysts feel that this time will be different for Cardano and its crypto lovers, who are up for another price climb above $1 before the end of 2024.

ADA Sees 5.76% Open Interest Increase

Aside from whale investments, ADA is seeing considerable activity from traders. According to data from on-chain analytics firm CoinGlass, ADA’s open interest has increased by 5.76% in the last 24 hours and 3.15% in the last hour. This increase shows strong trader activity, which contributes to the continued price surge.

Interestingly, despite the price increase, trade volume has dropped by 30%. It shows a trend toward larger, more strategic investments rather than high-frequency trading. The lower volume alongside rising prices indicates strong underlying demand and future appreciation.