On December 9, the price of Cardano ADA tickers down $0.558 and reached its highest level in 18 months, rising by more than 19% to $0.64. Just in December, it increased by 75%.
Why Has The Price Of Cardano ADA Increased?
Any revolutionary fundamentals have not accompanied recent advances. Rather, they surfaced on the cryptocurrency market, matching the decline of $41,546 in Bitcoin BTC tickers this month. Significantly, since its local peak on December 6, Bitcoin’s share of the cryptocurrency market has dropped by 3.5%, suggesting that many investors have been shifting their capital from the market for Bitcoin to other coins in an attempt to find better returns. Cardano has profited from this; since December 6, its market share has increased by more than 46%.
These rotations of money are typical in the cryptocurrency industry. After a significant price increase, traders usually sell Bitcoin and transfer their gains to smaller, riskier cryptocurrency assets. That is similar to how altcoins fared when Bitcoin’s share of the market declined at the beginning of November. The rise in the price of Cardano corresponds with a significant increase in the total quantity of ADA deposited throughout its blockchain network.
Cardano’s decentralized applications (dapps) saw a record-breaking high of 765.22 million ADA in total value locked (TVL) on December 9. Lenfi, a lending and borrowing protocol on the Cardano blockchain, led this growth with a 90% increase in its ADA reserves. ADA tokens are essentially taken out of circulation by TVL increasing, which can increase the price if demand remains high, as it appears to be doing with ADA’s recent surge. The $5 million short position liquidations and the $2.30 million long position liquidations on December 9 align with Cardano’s price increases. The ADA marketplace liquidated $6.91 million worth of short bets and $1.27 million worth of long holdings the day prior.
