The price of Cardano (ADA) is soaring. Today, ADA is up 18% and is among the best performers of the day. Today’s rise comes on top of yesterday’s strong move, when Cardano scored an impressive +16%.
Currently, according to CoinMarketCap, ADA is worth $0.42 and has more than doubled the price at which it opened 2021, when it was worth “only” 18 cents.
This increase in value has led Cardano to climb the list of the most highly capitalized, ranking 6th, behind Polkadot, which is $2 billion away.
What’s happening to the price of Cardano (ADA)
There is no particular news from the Cardano Foundation, IOHK or CEO Charles Hoskinson to justify the increase in Cardano’s price.
At a time when high volatility seems justified only by bets from the Reddit group WallStreetBets, Cardano seems to be an exception. There is nothing resembling what happened to Gamestop (or Ripple) going on, although there do seem to be Telegram groups that are organizing to pump it up.
What may have influenced the price, however, is the news that Grayscale Investments is opening trusts dedicated to ADA. In addition to Cardano, Grayscale may soon add Aave, Polkadot, and Monero trusts. These four cryptocurrencies would increase Grayscale’s Assets Under Management (AUM), which were worth $26.4 billion as of February 1st.
However, this doesn’t mean that we will soon see Cardano among Grayscale’s investment products. As explained by the company:
“Occasionally, we will make reservation filings, though a filing does not mean we will bring a product to market”.
Either way, ADA’s price has returned to revisit 40 cents for the first time since February 2018. Yet it remains a long way from its all-time high of $1.33, touched on January 4th, 2018.
At the time, Cardano experienced a decidedly fast climb, coinciding with the whole industry. Much like the rest of the sector, when the speculative bubble burst, it plummeted downwards to be worth about 14 cents in March 2018. By May it was back to worth 37 cents, but from there it began a slow descent. With the market crash in March, its value had even dropped to 4 cents. That was the beginning of a slow journey that saw Cardano’s price multiply 10-fold in a year.
This is more structural growth rather than a pump.