Smart contract platform Cardano’s native token, ADA, saw an unprecedented 41% growth this week, trading at $0.08 on Nov. 21. This caused Cardano’s market cap to surpass $28 billion yesterday and reach almost $34 billion by the end of the day on Friday.
Cryptocurrency analysts like Ali Martinez have highlighted how the ADA price rally came about as trading volume on Cardano increased by nearly 300% in the past two weeks, reaching $22.5 billion on November 21.
In the past 30 days, altcoins have once again seen price gains of over 120%, while the crypto market has been on a bull run, with Bitcoin rising to $93,000 last week and hovering around $100,000 today. The world’s largest cryptocurrency, BTC, reached a market cap of $2 trillion yesterday, November 21, when it surpassed $98,000.
On-chain analytics firm Santiment explained the surge in Cardano market cap by highlighting that it stands out from the altcoin pack due to the blockchain’s rise towards an 8-month high. Santiment also highlighted how the ADA price ratio is high compared to BTC due to whale volume causing a 26% increase in its value.
All of this has led to the Cardano Foundation benefiting from the altcoin’s rise, as the nonprofit organization held $478.24 million worth of assets, including tokens, as of December last year. With 82.5% of these being ADA holdings, 10.1% Bitcoin, and the rest cash equivalents, it’s no surprise that the Foundation has profited from the ADA price rally.
The value of these assets has increased exponentially, as the price of Cardano has increased by almost 297% in the last two weeks. The Foundation’s ADA holdings will be worth 100% more if they still own them.
The Cardano Foundation primarily earns from staking rewards by staking ADA tokens on the Cardano network. In 2023, it earned $20.9 million from 668.8 million ADA tokens, with an additional ADA yield of 3.1%.
On November 22, when it was published, Cardano was trading at $0.9688, up 21.91% in the last 24 hours, with trading volume increasing by 103.26% to $5.07 billion, while its market value rose to $33.99 billion.
