In a dramatic turn of events, Cardano (ADA) has experienced a staggering 162% increase in trading volumes despite the ongoing market sell-off, which has resulted in $435 million in crypto liquidations.
The cryptocurrency market is under selling pressure as major cryptocurrencies, led by Bitcoin (BTC), saw significant price drops, contributing to the overall market decline. Cardano is not immune to the bearish trend, falling 7% in the last 24 hours to trade at $0.375 at press time.
According to recent CoinShares data, almost $600 million were withdrawn from digital-asset products last week, the highest since March. Stubborn inflation has prompted traders to lower their expectations for a Federal Reserve interest rate reduction this year, posing a challenge to speculative assets such as cryptocurrencies.
The recent market crash has wiped out approximately $435 million in crypto liquidations, according to CoinGlass data, affecting various digital assets. the bigger chunk of this came from bullish or long traders expecting further price increases on the market, accounting for $360 million.
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Despite bearish market conditions, Cardano has seen a remarkable increase in trading volumes. Data from the crypto market ranking platform CoinMarketCap indicates that ADA's trading volumes have skyrocketed by 162% in the last 24 hours, reaching $574.9 million. This surge is notable, especially given the context of the overall market downturn.
The reasons for the surge in trading volume for ADA might be varied, although it might be indicative of investor positioning. Higher volatility often triggers higher trading volume as traders buy and sell in large quantities.
Cardano has recently gained traction among institutional investors, as reported, which might have contributed to the rise in trading volumes.
The market will keep a careful eye on ADA's price performance in the following days, waiting to see if it will capitalize on the current surge in interest or maintain its status quo.