Cardano (ADA) price rallied by 15%, outperforming major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP, on news of Grayscale’s spot ETF filing.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Cardano price has shot up by a massive 15% triggering a broader altcoin market revival and outperforming top market players like Bitcoin BTC $84 449 24h volatility: 0.1% Market cap: $1.68 T Vol. 24h: $8.41 B , Ethereum ETH $2 013 24h volatility: 0.8% Market cap: $242.85 B Vol. 24h: $6.67 B , and XRP XRP $2.39 24h volatility: 0.1% Market cap: $139.18 B Vol. 24h: $1.50 B . On behalf of crypto asset manager Grayscale, NYSE Arca has submitted an application for a spot Cardano exchange-traded fund (ETF) on Monday. The development was enough to push the ADA price ADA $0.71 24h volatility: 0.6% Market cap: $25.55 B Vol. 24h: $472.02 M to $0.80, setting the stage for the next rally to $1.0.
Cardano price is once again showing strength with 15% gains moving to its crucial resistance of $0.80. Also, the daily trading volume has surged by 54% to more than $1.18 billion, showing strength in this bullish momentum. Furthermore, as per the Coinglass data, the ADA futures open interest has surged by 19.4% moing past $742 million while the 24-hour liquidations have soared to more than $3.5 million, with short liquidations at 2.67 million.
Crypto analyst Ali Martinez has identified a crucial support zone for Cardano (ADA) between $0.67 and $0.81. Martinez noted that maintaining a position above this range could pave the way for a significant price rebound. Once the ADA price breaks past $0.81, it could set the stage for a further rally to $1.0 and beyond.
Blockchain analytics platform Santiment also reported that there’s a growing focus on Layer-1 networks such as BTC, ETH, SOL SOL $132.4 24h volatility: 0.9% Market cap: $67.63 B Vol. 24h: $1.53 B , and ADA suggesting a shift in the investor sentiment from meme coins to these top assets. The analytics platform added:
“The crypto community has largely shifted their attention to Bitcoin and other Layer 1 assets like Ethereum, Solana, Toncoin, and Cardano. Collectively, the top Layer 1 assets are getting 44.2% of discussions among specific coins. Meanwhile, top meme coins like Dogecoin, Shiba Inu, and Pepe are being discussed less and less across social media. A shift in trader attention from meme coins to Bitcoin and Layer 1 assets is generally a sign of a more stable and sustainable market environment”.
On behalf of Grayscale, NYSE Arca submitted the application for spot Cardano ETF to the US SEC on Monday, February 10. The filing shows that the NYSE would list and trade shares of a new Grayscale Cardano Trust. If approved, it would be the first Cardano investment product from Grayscale.
Furthermore, the filing notes that the Coinbase Custody Trust Company would serve as the custodian for the asset while the BNY Mellon Asset Servicing would be serving as the administrator. In the filing, NYSE Arca noted:
“The proposed rule change will facilitate the listing and trading of an additional type of exchange-traded product, and the first such product based on ADA, which will enhance competition among market participants, to the benefit of investors and the marketplace”.
Grayscale’s application to list a Cardano ETF follows a series of similar filings and updates from the asset manager in recent weeks. On February 6, the SEC officially acknowledged Grayscale’s amended filing to convert its existing Solana trust into a spot Solana (SOL) ETF.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
