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Cardano Market Cap Hits $34B As Whale Activity Increases

Cardano Market Cap Hits $34B As Whale Activity Increases

Nov, 22 2024 18:00
Cardano Market Cap Hits $34B As Whale Activity Increases

Smart contract platform Cardano’s native token ADA has seen an unprecedented 41% growth this week, resulting in it trading at $0.08 on November 21. This has caused the market capitalisation of Cardano to go beyond $28 billion yesterday and almost touched $34 billion by Friday end of the day.

Crypto analysts like Ali Martinez highlighted how the ADA price rally happened while the transaction volumes on Cardano grew nearly 300% in the last two weeks to reach $22.5 billion on November 21.

In the past 30 days, the altcoin has seen over 120% price again while the crypto market was on a bull run as seen by Bitcoin rising to $93000 last week and now at the brink of $100,000 today. The largest cryptocurrency in the world BTC rose to $2 trillion market capitalization as it crossed $98000 yesterday, November 21.

Onchain analysis firm Santiment explained the spike in Cardano market cap by highlighting that the blockchain is decoupled from the altcoin pack due to its surge towards the 8-month high point. Santiment further underlined how the ADA price ratio was high compared to BTC as the whale volume caused a 26% surge in its value.

All this has led to the Cardano Foundation benefiting from the bullish run of the altcoin as the non-profit organization had $478.24 million worth of assets including tokens as of December last year. With 82.5% of it being ADA holdings, 10.1% Bitcoin and the rest being cash equivalents, it is no wonder that the Foundation gained from the ADA price rally.

Since Cardano's price soared nearly more than 297% in the last two weeks, these assets’ value has grown exponentially. The Foundation’s ADA holdings will be valued 100% more if they still have them.

The Cardano Foundation primarily earns from staking rewards by delegating ADA tokens on the Cardano network. In 2023, it made $20.9 million from 668.8 million ADA tokens with an additional 3.1% ADA returns.

At the time of publication on November 22, Cardano was trading at $0.9688, up 21.91% in the last 24 hours with a 103.26% growth in its trading volume which was at $5.07 billion and the market cap rose to $33.99 billion.

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