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December 8, 2022
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Cardano Rally: these significant factors indicate that there is still room for more

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.

Source: Twitter

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.

Here's why Cardano's rally isn't over yet

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.

Source: AMBCrypto

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