Cardano is making impressive gains in 2021, but there is still room for a safe vertical climb
After reaching a new ATH and trading volume has increased several times over the past few weeks, the ADA funding rate is still relatively low based on the data from the 8 hour funding rate graph. The ADA is still not overly leveraged and there is room for vertical price growth, without a significant settlement risk and a domino effect.
In addition, there is a consistent increase in staking revenue and is likely to increase as more ADA is put in place and the price increases. Unlike other changes, ADA bullishness has a continuing upward trend and this is expected to increase demand in the short term.
ADA is now trading at the $ 2.05 level, after suffering a drop of more than 10% in the price in the last 24 hours. Trading volume fell by almost 14% based on data from coinmarketcap.com.
Cardano handled nearly $ 9 billion in transaction volume and Ethereum handled $ 24.8 billion. At the same time, the ETH network charged users $ 88.9 million and the ADA charged $ 18,000. This shows the huge difference in network rates. Based on these figures, the ADA is 1938 times more efficient. Despite L2, ETH may not have solved the fees problem with a competitor like ADA.
Despite a temporary drop in price, the volume of transactions, fees and relevant metrics in the chain, the social volume of ADA and the sentiment among traders signal that there may be a recovery.
The number of large transactions on the network increased by 6.14%. The growth of the network is almost 4.31% based on data from the intotheblock, currently, about 10% of HODLers have had ADA for more than a year. This number is expected to increase when more HODLers accumulate ADA during the dive.
About 96% of HODLers are profitable at the current price level, in addition, since the ADA is negatively correlated with the BTC, the current drop in the BTC price is a determining factor for the ADA rally.
The momentum in the ADA futures market is low, however, it depends on the price and the price has currently plummeted.
Source: Staking Rewards
Based on the chart above, revenue from staking rewards peaked before dropping to the current $ 5.5 million. Despite the high volume of ADA in staking, revenue has been achieved, and that should change in the short term.