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Is Cardano Dead: What Happened to ADA’s Big Dreams?
Can Cardano, once hailed as the future of blockchain, recover from its steep decline, or has ADA’s journey from promise to disappointment marked the end of its ambitious dreams?
Table of Contents
How the story started
The current state of Cardano’s ecosystem
Why is Cardano lagging?
What does the public sentiment say?
What do the data and experts say?
The road ahead
How the story started
Cardano (ADA) started with big dreams. Created by Charles Hoskinson, one of Ethereum’s (ETH) co-founders, it aimed to tackle the issues of scalability, sustainability, and interoperability that troubled earlier blockchains like Bitcoin (BTC) and Ethereum. Using a proof-of-stake (PoS) system called Ouroboros, Cardano promised a greener and safer blockchain.
Cardano’s journey had some notable milestones. The Alonzo upgrade in September 2021 brought smart contracts to the network, and the Vasil hard fork in 2022 aimed to boost scalability.
These upgrades positioned Cardano as a potential heavyweight in the decentralized finance (DeFi) arena, with applications like non-fungible tokens (NFTs) and decentralized exchanges (DEXs) in tow.
Yet, despite these advancements, Cardano has struggled to keep its momentum. ADA reached its peak price of $3.10 in September 2021, but as of May 29, it’s trading around $0.46—an 85% drop.
ADA lifetime price chart | Source: CoinMarketCap
This decline has sparked speculation, including from popular crypto influencer Ben Armstrong, also known as BitBoy Crypto.
In an April 6 video, Armstrong compared Cardano’s performance with other networks, arguing that they are “blowing up and getting a lot of recognition” while the average person “can’t name three projects on ADA.”
Armstrong attributed this to better price action and liquidity on other chains, which attract more usage and institutional money. He noted that Cardano’s liquidity is largely locked up in staking, making it less attractive for big investors.
According to Armstrong: “The markets are telling us very clearly – look at where the big money is and look at where it’s going… ADA is getting left out.”
In response, Cardano founder Charles Hoskinson expressed disappointment, stating that Armstrong “was always friendly in person to me” and found it “sad to see him go down this road,” but he still wished Armstrong well and hoped for the best.
Well @BenArmstrongsX was always friendly in person to me. Sad to see him go down this road. Wish him well and hope for the best. https://t.co/b9lFeO70oe
— Charles Hoskinson (@IOHK_Charles) April 7, 2024
What has led to this decline, and is Cardano really dead? Let’s dive in and find out.
The current state of Cardano’s ecosystem
To better understand Cardano’s position, let’s compare it with its notable competitors: Ethereum, Binance Smart Chain (BNB), and Solana (SOL) over the last 30 days as of May 29.
Dapp development and adoption
Cardano’s decentralized application (dApp) ecosystem is expanding, with 54 active dApps and 132 smart contracts. However, these numbers seem modest when compared to Ethereum’s 4,589 dApps and over 177,000 smart contracts, as well as Binance Smart Chain’s 5,329 dApps and over 79,000 smart contracts.
Solana also outpaces Cardano with 269 dApps and 1,820 smart contracts. The limited number of dApps and smart contracts on Cardano impacts its attractiveness to both developers and users.
For developers, a smaller ecosystem means fewer opportunities for collaboration, support, and potential users. This can be a deterrent, especially for those looking to launch new projects quickly and efficiently.
For users, a limited selection of dApps translates to fewer services and functionalities available, which can affect the overall user experience.
To illustrate, consider Ethereum’s DeFi ecosystem, a major draw for developers and users. Projects like Uniswap (UNI), Aave (AAVE), and Compound (COMP) have established themselves as leaders in the space, contributing to Ethereum’s dominance.
Meanwhile, Solana’s rapid growth can be attributed to its high-performance capabilities, NFT ecosystem, prevalence of meme coins, ability to enable lightning-speed transactions, and low costs.
Cardano, while promising similar capabilities with its Hydra scaling solution, has yet to achieve comparable adoption. The limited number of dApps and smart contracts on Cardano affects the network’s ability to compete with more established ecosystems.
Cardano’s TVL and market cap to TVL ratio analysis
Cardano’s total value locked (TVL) stands at $255.57 million as of May 29, which is far lower compared to Ethereum’s $65.255 billion, Binance Smart Chain’s $5.52 billion, and Solana’s $4.84 billion, reflecting Cardano’s struggle to attract and retain substantial DeFi activity.
Interestingly, Cardano’s TVL has experienced a sharp decline of around 50% in the last two months, dropping from $490 million in March, suggesting a loss of confidence among investors and users.
Cardano TVL chart | Source: DeFi LIama
The market cap to TVL ratio further provides a dreadful overview into Cardano’s position. Cardano’s ratio is at 62.45, which is far higher than Ethereum’s 6.95, BSC’s 16.63, and Solana’s 16.09.
A high market cap to TVL ratio often indicates that a blockchain’s market valuation is much higher than the value locked in its DeFi protocols, suggesting that the market may be overvaluing the asset relative to its actual DeFi usage.
In simple words, speculative investments may be driving up Cardano’s market cap without corresponding growth in DeFi applications and user activity.
You might also like: Is Polygon a sleeping giant or a sinking ship? Analysis of MATIC’s next move
User engagement and NFT activity
Cardano’s user activity, measured by unique active wallets (UAW), stands at 40,030. This figure pales in comparison to Solana’s 5.32 million UAW, Binance Smart Chain’s 4.09 million UAW, and Ethereum’s 2.76 million UAW.
High user activity on Ethereum and Binance Smart Chain can be attributed to their extensive ecosystems, which offer a wide range of DeFi applications, NFTs, and more, providing users with varied engagement opportunities.
For NFTs, Cardano’s volume is $1.68 million, lower than Ethereum’s $442.91 million and Solana’s $73.21 million. Binance Smart Chain, although leading in dApp volume, also trails behind Ethereum in NFT volume.
The low NFT volume on Cardano points to limited marketplace activity and user interest in trading and creating NFTs on the platform.
Transaction and volume comparison
Transaction volume is another critical metric for evaluating blockchain performance. Cardano processed approximately 409,300 transactions, while Ethereum managed 7.39 million, Binance Smart Chain 21.86 million, and Solana a staggering 235.11 million.
Meanwhile, examining the overall dApp volume, Ethereum dominates with $208.21 billion, Binance Smart Chain follows with $21.71 billion, and Solana with $3.55 billion. Cardano’s dApp volume of $173.32 million is relatively small, indicating fewer financial activities and interactions within its ecosystem.
Why is Cardano lagging?
Cardano’s ecosystem faces several critical challenges that have caused it to lag behind its main competitors. Let’s break them down one by one.
Development delays and execution issues
Cardano has often been criticized for its slow and methodical approach to development. While this rigorous, peer-reviewed process ensures high-quality output, it delays the deployment of key features.
For example, Cardano introduced smart contract functionality only in September 2021, despite launching several years ahead of competitors like BNB Chain, Solana, and Polygon (MATIC), which have already onboarded millions of users through this use case.
Cardano’s late arrival to the smart contract party means it faces an uphill task against competitors hindering its ability to attract and retain users. As a result, its ecosystem has struggled to gain traction in the face of more established and dynamic platforms.
Inadequate marketing and community engagement
Cardano’s marketing efforts and community engagement have been less effective than those of its competitors. The forums and online communities dedicated to Cardano are often less active, with fewer discussions about new and innovative projects.
For instance, the Solana community is vibrant, with frequent posts about unique developments, which keeps the ecosystem lively and engaging.
In contrast, Cardano’s online presence is perceived as more stagnant, focusing on old narratives rather than new advancements. Effective marketing is crucial for attracting new users and retaining existing ones, something Cardano needs to improve.
Competition from robust ecosystems
Cardano is up against well-established ecosystems that have already captured a large market share. Ethereum, for example, is not only the pioneer of smart contracts but also continues to lead in terms of developer activity and project launches.
The Ethereum-centric programming language, Solidity, has gained immense popularity, making it the go-to choice for blockchain developers. This has resulted in a robust and thriving ecosystem with a wide array of decentralized applications.
Other competitors, including Binance Smart Chain, Avalanche (AVAX), and Polygon, have gained traction by introducing support for the Ethereum Virtual Machine (EVM).
EVM compatibility allows developers to deploy native apps seamlessly across these networks, lowering the entry barriers for new projects.
Cardano, however, is still on the path to supporting EVM, having recently launched the solution on testnet. Until full EVM support is operational, developers need to learn Cardano’s native programming language, Haskell, and Plutus’s script from scratch. This onboarding experience hasn’t been ideal, increasing the barrier for developers to migrate from other thriving ecosystems to Cardano.
As a result, the slower adoption and fewer offerings in Cardano’s ecosystem make it challenging to compete with these well-established and more developer-friendly platforms.
Limited real-world use cases
Despite its technological progress, Cardano has struggled to showcase real-world use cases that can drive large-scale adoption.
The blockchain space is highly competitive, and without compelling applications that demonstrate the practical benefits of Cardano’s technology, it becomes challenging to attract new users and developers.
Ethereum, for instance, has numerous high-profile projects and collaborations that highlight its versatility and utility in various industries, from finance to gaming.
What does the public sentiment say?
The sentiment around Cardano on Reddit is a mixed bag, reflecting both optimism and frustration among long-time holders and new observers.
A prominent holder since 2017 pointed out that the Cardano forum appears dead, with a noticeable lack of excitement and innovative discussions. The core concern is the absence of real-life use cases and direction for Cardano, leaving many to wonder about the technology’s practical applications.
Despite this, another user countered by discussing the ongoing developments within the Cardano ecosystem. They noted that much of the conversation has shifted to Twitter (X) and in-person meetups, where new programming languages like Aiken, Opshin, and Helios are being introduced.
The user even mentioned advancements in scalability with zkfold, zeko, and zk primitives, along with the construction of an account model by the Optim team. Projects are also utilizing Plutus v2+ to enhance smart contracts, indicating a strong, albeit less visible, development activity.
Meanwhile, some argued that venture capitalists and financial institutions have vested interests in seeing Cardano fail because of its fair token allocation and decentralization, which threatens traditional profit models, fueling a belief in Cardano’s long-term potential.
On the flip side, skepticism persists among those disheartened by Cardano’s slow progress and low liquidity on decentralized exchanges. These users are wary of the lack of rapid development and immediate use cases, contrasting with the high expectations set years ago.
What do the data and experts say?
A comprehensive analysis by AlphaQuest examined over 12,000 cryptocurrency projects and found that nearly two-thirds of these projects have died.
Among the top 10 ecosystems with the most defunct coins, Cardano ranks prominently, with 74% of its projects becoming inactive or ceasing to exist. This high failure rate reveals deep-rooted systemic issues, such as inadequate liquidity, low trading volumes, and insufficient developer engagement.
For instance, 93% of dead coins suffered from low liquidity or trading volume, indicating a severe decline in investor interest.
Meanwhile, the volatility and market conditions in the crypto space have further exacerbated these challenges. Major collapses, like those of Terra and FTX, had led to the demise of numerous projects.
Specifically, after the Terra crash, 35% of crypto projects were deemed defunct. This instability also affected Cardano, which saw a considerable portion of its projects fail during these turbulent times.
Amid this, institutional confidence in Cardano has also been shaken. Grayscale, a leading crypto asset management firm, recently removed Cardano from its Digital Large Cap Fund as part of its quarterly rebalancing.
At the end of the day on 4/3/2024, Grayscale Digital Large Cap Fund’s Fund Components were a basket of the following assets and weightings. As a result of the rebalancing, Cardano $ADA has been removed. https://t.co/o5jJz3NKs0$BTC $ETH $SOL $XRP $AVAX (3/6) pic.twitter.com/qVymu05BKw
— Grayscale (@Grayscale) April 4, 2024
Although the firm did not explicitly state the reasons, this move suggests a declining confidence in ADA’s performance and potential.
Grayscale’s decision to retain other assets like BTC and Solana SOL while dropping ADA suggests a shift in institutional preference towards more promising and stable assets.
The road ahead
Despite the data showing that Cardano is lagging behind its competitors, declaring it “dead” might be premature. While the road ahead is challenging, Cardano’s community could spark a renaissance.
Will Cardano rise from the ashes and redefine its path, or will it fade into obscurity as another ambitious project that couldn’t keep up? Only time will tell, but the story of Cardano is far from over.
Table of Contents
How the story started
The current state of Cardano’s ecosystem
Why is Cardano lagging?
What does the public sentiment say?
What do the data and experts say?
The road ahead
How the story started
Cardano (ADA) started with big dreams. Created by Charles Hoskinson, one of Ethereum’s (ETH) co-founders, it aimed to tackle the issues of scalability, sustainability, and interoperability that troubled earlier blockchains like Bitcoin (BTC) and Ethereum. Using a proof-of-stake (PoS) system called Ouroboros, Cardano promised a greener and safer blockchain.
Cardano’s journey had some notable milestones. The Alonzo upgrade in September 2021 brought smart contracts to the network, and the Vasil hard fork in 2022 aimed to boost scalability.
These upgrades positioned Cardano as a potential heavyweight in the decentralized finance (DeFi) arena, with applications like non-fungible tokens (NFTs) and decentralized exchanges (DEXs) in tow.
Yet, despite these advancements, Cardano has struggled to keep its momentum. ADA reached its peak price of $3.10 in September 2021, but as of May 29, it’s trading around $0.46—an 85% drop.
ADA lifetime price chart | Source: CoinMarketCap
This decline has sparked speculation, including from popular crypto influencer Ben Armstrong, also known as BitBoy Crypto.
In an April 6 video, Armstrong compared Cardano’s performance with other networks, arguing that they are “blowing up and getting a lot of recognition” while the average person “can’t name three projects on ADA.”
Armstrong attributed this to better price action and liquidity on other chains, which attract more usage and institutional money. He noted that Cardano’s liquidity is largely locked up in staking, making it less attractive for big investors.
According to Armstrong: “The markets are telling us very clearly – look at where the big money is and look at where it’s going… ADA is getting left out.”
In response, Cardano founder Charles Hoskinson expressed disappointment, stating that Armstrong “was always friendly in person to me” and found it “sad to see him go down this road,” but he still wished Armstrong well and hoped for the best.
Well @BenArmstrongsX was always friendly in person to me. Sad to see him go down this road. Wish him well and hope for the best. https://t.co/b9lFeO70oe
— Charles Hoskinson (@IOHK_Charles) April 7, 2024
What has led to this decline, and is Cardano really dead? Let’s dive in and find out.
The current state of Cardano’s ecosystem
To better understand Cardano’s position, let’s compare it with its notable competitors: Ethereum, Binance Smart Chain (BNB), and Solana (SOL) over the last 30 days as of May 29.
Dapp development and adoption
Cardano’s decentralized application (dApp) ecosystem is expanding, with 54 active dApps and 132 smart contracts. However, these numbers seem modest when compared to Ethereum’s 4,589 dApps and over 177,000 smart contracts, as well as Binance Smart Chain’s 5,329 dApps and over 79,000 smart contracts.
Solana also outpaces Cardano with 269 dApps and 1,820 smart contracts. The limited number of dApps and smart contracts on Cardano impacts its attractiveness to both developers and users.
For developers, a smaller ecosystem means fewer opportunities for collaboration, support, and potential users. This can be a deterrent, especially for those looking to launch new projects quickly and efficiently.
For users, a limited selection of dApps translates to fewer services and functionalities available, which can affect the overall user experience.
To illustrate, consider Ethereum’s DeFi ecosystem, a major draw for developers and users. Projects like Uniswap (UNI), Aave (AAVE), and Compound (COMP) have established themselves as leaders in the space, contributing to Ethereum’s dominance.
Meanwhile, Solana’s rapid growth can be attributed to its high-performance capabilities, NFT ecosystem, prevalence of meme coins, ability to enable lightning-speed transactions, and low costs.
Cardano, while promising similar capabilities with its Hydra scaling solution, has yet to achieve comparable adoption. The limited number of dApps and smart contracts on Cardano affects the network’s ability to compete with more established ecosystems.
Cardano’s TVL and market cap to TVL ratio analysis
Cardano’s total value locked (TVL) stands at $255.57 million as of May 29, which is far lower compared to Ethereum’s $65.255 billion, Binance Smart Chain’s $5.52 billion, and Solana’s $4.84 billion, reflecting Cardano’s struggle to attract and retain substantial DeFi activity.
Interestingly, Cardano’s TVL has experienced a sharp decline of around 50% in the last two months, dropping from $490 million in March, suggesting a loss of confidence among investors and users.
Cardano TVL chart | Source: DeFi LIama
The market cap to TVL ratio further provides a dreadful overview into Cardano’s position. Cardano’s ratio is at 62.45, which is far higher than Ethereum’s 6.95, BSC’s 16.63, and Solana’s 16.09.
A high market cap to TVL ratio often indicates that a blockchain’s market valuation is much higher than the value locked in its DeFi protocols, suggesting that the market may be overvaluing the asset relative to its actual DeFi usage.
In simple words, speculative investments may be driving up Cardano’s market cap without corresponding growth in DeFi applications and user activity.
You might also like: Is Polygon a sleeping giant or a sinking ship? Analysis of MATIC’s next move
User engagement and NFT activity
Cardano’s user activity, measured by unique active wallets (UAW), stands at 40,030. This figure pales in comparison to Solana’s 5.32 million UAW, Binance Smart Chain’s 4.09 million UAW, and Ethereum’s 2.76 million UAW.
High user activity on Ethereum and Binance Smart Chain can be attributed to their extensive ecosystems, which offer a wide range of DeFi applications, NFTs, and more, providing users with varied engagement opportunities.
For NFTs, Cardano’s volume is $1.68 million, lower than Ethereum’s $442.91 million and Solana’s $73.21 million. Binance Smart Chain, although leading in dApp volume, also trails behind Ethereum in NFT volume.
The low NFT volume on Cardano points to limited marketplace activity and user interest in trading and creating NFTs on the platform.
Transaction and volume comparison
Transaction volume is another critical metric for evaluating blockchain performance. Cardano processed approximately 409,300 transactions, while Ethereum managed 7.39 million, Binance Smart Chain 21.86 million, and Solana a staggering 235.11 million.
Meanwhile, examining the overall dApp volume, Ethereum dominates with $208.21 billion, Binance Smart Chain follows with $21.71 billion, and Solana with $3.55 billion. Cardano’s dApp volume of $173.32 million is relatively small, indicating fewer financial activities and interactions within its ecosystem.
Why is Cardano lagging?
Cardano’s ecosystem faces several critical challenges that have caused it to lag behind its main competitors. Let’s break them down one by one.
Development delays and execution issues
Cardano has often been criticized for its slow and methodical approach to development. While this rigorous, peer-reviewed process ensures high-quality output, it delays the deployment of key features.
For example, Cardano introduced smart contract functionality only in September 2021, despite launching several years ahead of competitors like BNB Chain, Solana, and Polygon (MATIC), which have already onboarded millions of users through this use case.
Cardano’s late arrival to the smart contract party means it faces an uphill task against competitors hindering its ability to attract and retain users. As a result, its ecosystem has struggled to gain traction in the face of more established and dynamic platforms.
Inadequate marketing and community engagement
Cardano’s marketing efforts and community engagement have been less effective than those of its competitors. The forums and online communities dedicated to Cardano are often less active, with fewer discussions about new and innovative projects.
For instance, the Solana community is vibrant, with frequent posts about unique developments, which keeps the ecosystem lively and engaging.
In contrast, Cardano’s online presence is perceived as more stagnant, focusing on old narratives rather than new advancements. Effective marketing is crucial for attracting new users and retaining existing ones, something Cardano needs to improve.
Competition from robust ecosystems
Cardano is up against well-established ecosystems that have already captured a large market share. Ethereum, for example, is not only the pioneer of smart contracts but also continues to lead in terms of developer activity and project launches.
The Ethereum-centric programming language, Solidity, has gained immense popularity, making it the go-to choice for blockchain developers. This has resulted in a robust and thriving ecosystem with a wide array of decentralized applications.
Other competitors, including Binance Smart Chain, Avalanche (AVAX), and Polygon, have gained traction by introducing support for the Ethereum Virtual Machine (EVM).
EVM compatibility allows developers to deploy native apps seamlessly across these networks, lowering the entry barriers for new projects.
Cardano, however, is still on the path to supporting EVM, having recently launched the solution on testnet. Until full EVM support is operational, developers need to learn Cardano’s native programming language, Haskell, and Plutus’s script from scratch. This onboarding experience hasn’t been ideal, increasing the barrier for developers to migrate from other thriving ecosystems to Cardano.
As a result, the slower adoption and fewer offerings in Cardano’s ecosystem make it challenging to compete with these well-established and more developer-friendly platforms.
Limited real-world use cases
Despite its technological progress, Cardano has struggled to showcase real-world use cases that can drive large-scale adoption.
The blockchain space is highly competitive, and without compelling applications that demonstrate the practical benefits of Cardano’s technology, it becomes challenging to attract new users and developers.
Ethereum, for instance, has numerous high-profile projects and collaborations that highlight its versatility and utility in various industries, from finance to gaming.
What does the public sentiment say?
The sentiment around Cardano on Reddit is a mixed bag, reflecting both optimism and frustration among long-time holders and new observers.
A prominent holder since 2017 pointed out that the Cardano forum appears dead, with a noticeable lack of excitement and innovative discussions. The core concern is the absence of real-life use cases and direction for Cardano, leaving many to wonder about the technology’s practical applications.
Despite this, another user countered by discussing the ongoing developments within the Cardano ecosystem. They noted that much of the conversation has shifted to Twitter (X) and in-person meetups, where new programming languages like Aiken, Opshin, and Helios are being introduced.
The user even mentioned advancements in scalability with zkfold, zeko, and zk primitives, along with the construction of an account model by the Optim team. Projects are also utilizing Plutus v2+ to enhance smart contracts, indicating a strong, albeit less visible, development activity.
Meanwhile, some argued that venture capitalists and financial institutions have vested interests in seeing Cardano fail because of its fair token allocation and decentralization, which threatens traditional profit models, fueling a belief in Cardano’s long-term potential.
On the flip side, skepticism persists among those disheartened by Cardano’s slow progress and low liquidity on decentralized exchanges. These users are wary of the lack of rapid development and immediate use cases, contrasting with the high expectations set years ago.
What do the data and experts say?
A comprehensive analysis by AlphaQuest examined over 12,000 cryptocurrency projects and found that nearly two-thirds of these projects have died.
Among the top 10 ecosystems with the most defunct coins, Cardano ranks prominently, with 74% of its projects becoming inactive or ceasing to exist. This high failure rate reveals deep-rooted systemic issues, such as inadequate liquidity, low trading volumes, and insufficient developer engagement.
For instance, 93% of dead coins suffered from low liquidity or trading volume, indicating a severe decline in investor interest.
Meanwhile, the volatility and market conditions in the crypto space have further exacerbated these challenges. Major collapses, like those of Terra and FTX, had led to the demise of numerous projects.
Specifically, after the Terra crash, 35% of crypto projects were deemed defunct. This instability also affected Cardano, which saw a considerable portion of its projects fail during these turbulent times.
Amid this, institutional confidence in Cardano has also been shaken. Grayscale, a leading crypto asset management firm, recently removed Cardano from its Digital Large Cap Fund as part of its quarterly rebalancing.
At the end of the day on 4/3/2024, Grayscale Digital Large Cap Fund’s Fund Components were a basket of the following assets and weightings. As a result of the rebalancing, Cardano $ADA has been removed. https://t.co/o5jJz3NKs0$BTC $ETH $SOL $XRP $AVAX (3/6) pic.twitter.com/qVymu05BKw
— Grayscale (@Grayscale) April 4, 2024
Although the firm did not explicitly state the reasons, this move suggests a declining confidence in ADA’s performance and potential.
Grayscale’s decision to retain other assets like BTC and Solana SOL while dropping ADA suggests a shift in institutional preference towards more promising and stable assets.
The road ahead
Despite the data showing that Cardano is lagging behind its competitors, declaring it “dead” might be premature. While the road ahead is challenging, Cardano’s community could spark a renaissance.
Will Cardano rise from the ashes and redefine its path, or will it fade into obscurity as another ambitious project that couldn’t keep up? Only time will tell, but the story of Cardano is far from over.
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Global Bitcoin ETF Holdings Reach Record High, Valued Over $68 Billion
According to PANews, as of May 31, the total number of Bitcoins held by global Bitcoin Exchange Traded Funds (ETFs) reached a historic high of 1,005,767, valued at over $68 billion. The United States Bitcoin spot ETFs held a significant portion of this total, with 858,301 Bitcoins, valued at over $58 billion.
This record-breaking accumulation of Bitcoin by ETFs indicates a growing interest and confidence in the cryptocurrency market. The United States, in particular, has shown a substantial investment in Bitcoin, with its spot ETFs holding a majority of the total Bitcoins.
The data underscores the increasing acceptance of Bitcoin as a viable investment option by major financial institutions. The surge in Bitcoin holdings by ETFs could potentially influence the cryptocurrency market, driving further growth and stability.
This record-breaking accumulation of Bitcoin by ETFs indicates a growing interest and confidence in the cryptocurrency market. The United States, in particular, has shown a substantial investment in Bitcoin, with its spot ETFs holding a majority of the total Bitcoins.
The data underscores the increasing acceptance of Bitcoin as a viable investment option by major financial institutions. The surge in Bitcoin holdings by ETFs could potentially influence the cryptocurrency market, driving further growth and stability.
Urgent ‼️
Ethereum $ETH to the moon 🌝 ⁉️
Spot Etf is on the way, feels like something big is brewing up, what's your take on this⁉️ $BTC $BNB
#ETHETFS #BTCETFSPOT #altcoins #BTC #buythedip
Ethereum $ETH to the moon 🌝 ⁉️
Spot Etf is on the way, feels like something big is brewing up, what's your take on this⁉️ $BTC $BNB
#ETHETFS #BTCETFSPOT #altcoins #BTC #buythedip
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Spot Ethereum ETF Expected To Be Listed In July Or August
According to Odaily, Galaxy Digital's report, released prior to approval, predicts that a spot Ethereum ETF may be listed on the exchange in July or August. The report does not provide further details on the potential listing, such as the specific exchange or the expected trading volume. The listing of a spot Ethereum ETF would mark a significant development in the cryptocurrency market, potentially providing investors with a new way to gain exposure to Ethereum. However, it's important to note that the report's prediction is not a guarantee, and the actual listing could be subject to regulatory approval and market conditions.
$BTC Greed slowly eating up the weak hands, it had me multiple times, what's your strategy in this time of despair, i feel a dystopian rush up my spine! $ETH $BNB #btcupdates2024 #ETHETFS #SolanaUSTD #altcoins #MemeWatch2024
LIVEBinance News
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Cryptocurrency Market Sees Liquidation of $344 Million in 24 Hours
According to Foresight News, recent data from Coinglass reveals that the global cryptocurrency market experienced a liquidation of approximately $344 million within the past 24 hours. This figure includes the liquidation of $278 million in short positions and $65.43 million in long positions.
Ethereum, a leading cryptocurrency, saw a liquidation of about $118 million. Bitcoin, the world's largest and most popular cryptocurrency, experienced a liquidation of approximately $97.75 million. This data provides a snapshot of the volatility and risk associated with cryptocurrency trading, as large amounts of assets can be liquidated in a short period.
Ethereum, a leading cryptocurrency, saw a liquidation of about $118 million. Bitcoin, the world's largest and most popular cryptocurrency, experienced a liquidation of approximately $97.75 million. This data provides a snapshot of the volatility and risk associated with cryptocurrency trading, as large amounts of assets can be liquidated in a short period.
$BTC in a frenzy zone, with all the macroeconomics and geopolitics going around, including the successful assassination of Iran, what are your thoughts on it affecting $btc and the broader crypto industry? what bags are you holding till the next halving? $ETH $BNB #SolanaUSTD #altcoins #BlackRock #MicroStrategy #bitcoin
Bullish
63%
Bearish
37%
19 дауыс • Дауыс беру жабық
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Bitcoin(BTC) Drops Below 64,000 USDT with a 3.97% Decrease in 24 Hours
On Mar 05, 2024, 18:52 PM(UTC). According to Binance Market Data, Bitcoin has dropped below 64,000 USDT and is now trading at 63,882.789063 USDT, with a 3.97% decrease in 24 hours.
LIVECointelegraph
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Bitcoin Just Hit a Record in Open Interest — Expect Imminent Volatility
As the Bitcoin (BTC) and Ethereum (ETH) rally has gained pace over recent weeks, we have seen open interest in both assets nearing record-high levels reminiscent of the feverish days of the 2021 rally. This frantic increase in trading activity is a sure sign that the bull market is finally in full swing. However, the parallels with 2021 are also a more worrying indicator that the market is overheating, with further volatility for BTC and ETH prices likely around the corner.
That isn’t to say we are anywhere near the all-time highs we will see later in the cycle, but overzealous investors would be wise to exercise a certain amount of caution at these lofty prices. Indeed, Bitcoin has risen more than 50% over the past 30 days and is closing in on its ATH, while Ethereum is shooting the lights out with a 50% rise over the same time period.
But it’s not just this rapid price appreciation that foreshadows imminent volatility in the two biggest crypto assets. Technical indicators like open interest and Bitcoin funding rates — a reliable forecasting tool when taken in aggregate — paint a picture of a rather frothy market.
Related: Why Solana will prevail despite Ethereum ETFs
Last week, the funding rates in Bitcoin perpetual futures listed on Binance surpassed 100% for the first time in at least a year, which means that leverage is skewed toward the bullish side. Meanwhile, rising open interest represents a spike in the volume of open BTC and ETH derivatives positions on exchanges, including both long (buy) and short (sell) positions in Bitcoin and Ethereum futures or options contracts. Together, high funding rates, extreme price movements and rising open interest often act as a warning sign for traders, particularly those using leverage.
Open interest in Bitcoin hit $31 billion on March 4, easily surpassing the $24.3 billion record set on April 14, 2021. Bitcoin’s price was sitting close to current levels at that time, opening at $63,524 — before falling some 23% to $49,078 by April 26, 2021.
Meanwhile, open interest in ETH futures sat around $12 billion as of March 4, edging closer to the $13 billion peak seen on Nov. 9, 2021 — the day ETH opened at an all-time high of $4,810. By November 19, ETH fell to $3,996, 17% below its peak.
Open interest in Bitcoin futures as of March 4, 2024. Source: CoinGlass
Drawing parallels with 2021, it seems apparent that BTC and ETH need a breather. Bitcoin has soared more than 180% in the year leading to March 4. In some major currencies, including the Argentine peso and the Japanese yen, it has already surpassed its previous record. ETH is lagging behind, having risen more than 120% in 12 months.
There are a number of reasons for Ether lagging behind Bitcoin in terms of price movements, not least the fact that the deadline for a spot ETH ETF approval is still a few months away. We can expect further price appreciation in the lead-up to this historic decision. Similarly, the Bitcoin halving slated for next month will almost certainly be a catalyst for further price increases, if history is any indicator.
Related: 2024 will be the Ethereum network's biggest year in history
So the rising open interest and funding rates don’t change the fundamentals around BTC and ETH — fresh all-time highs are still all but guaranteed this cycle. They’re simply a sign that the crypto market is getting away with itself. Such frantic trading isn’t just down to professional traders or long-term believers in crypto — it also indicates a rise in FOMO, and that’s a house of cards that can easily crumble in the short term.
In such frothy markets, it’s particularly important to have a solid strategy and stick to it, without allowing emotions to get in the way. For options traders, this means watching the charts and the data, not just the green candles. For buy-and-hold investors, it’s remembering that crypto is a volatile asset class and all signs point to further volatility incoming.
But most importantly, it’s a reminder for anyone in crypto to stay calm and avoid getting carried away with all the excitement of assets soaring towards their ATHs. There will be plenty more chances to get excited in the coming months. It’s those who keep their cool amid the market turbulence that will be the most successful in this bull run.
Lucas Kiely is the chief investment officer for Yield App, where he oversees investment portfolio allocations and leads the expansion of a diversified investment product range. He was previously the chief investment officer at Diginex Asset Management, and a senior trader and managing director at Credit Suisse in Hong Kong, where he managed QIS and Structured Derivatives trading. He was also the head of exotic derivatives at UBS in Australia.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
That isn’t to say we are anywhere near the all-time highs we will see later in the cycle, but overzealous investors would be wise to exercise a certain amount of caution at these lofty prices. Indeed, Bitcoin has risen more than 50% over the past 30 days and is closing in on its ATH, while Ethereum is shooting the lights out with a 50% rise over the same time period.
But it’s not just this rapid price appreciation that foreshadows imminent volatility in the two biggest crypto assets. Technical indicators like open interest and Bitcoin funding rates — a reliable forecasting tool when taken in aggregate — paint a picture of a rather frothy market.
Related: Why Solana will prevail despite Ethereum ETFs
Last week, the funding rates in Bitcoin perpetual futures listed on Binance surpassed 100% for the first time in at least a year, which means that leverage is skewed toward the bullish side. Meanwhile, rising open interest represents a spike in the volume of open BTC and ETH derivatives positions on exchanges, including both long (buy) and short (sell) positions in Bitcoin and Ethereum futures or options contracts. Together, high funding rates, extreme price movements and rising open interest often act as a warning sign for traders, particularly those using leverage.
Open interest in Bitcoin hit $31 billion on March 4, easily surpassing the $24.3 billion record set on April 14, 2021. Bitcoin’s price was sitting close to current levels at that time, opening at $63,524 — before falling some 23% to $49,078 by April 26, 2021.
Meanwhile, open interest in ETH futures sat around $12 billion as of March 4, edging closer to the $13 billion peak seen on Nov. 9, 2021 — the day ETH opened at an all-time high of $4,810. By November 19, ETH fell to $3,996, 17% below its peak.
Open interest in Bitcoin futures as of March 4, 2024. Source: CoinGlass
Drawing parallels with 2021, it seems apparent that BTC and ETH need a breather. Bitcoin has soared more than 180% in the year leading to March 4. In some major currencies, including the Argentine peso and the Japanese yen, it has already surpassed its previous record. ETH is lagging behind, having risen more than 120% in 12 months.
There are a number of reasons for Ether lagging behind Bitcoin in terms of price movements, not least the fact that the deadline for a spot ETH ETF approval is still a few months away. We can expect further price appreciation in the lead-up to this historic decision. Similarly, the Bitcoin halving slated for next month will almost certainly be a catalyst for further price increases, if history is any indicator.
Related: 2024 will be the Ethereum network's biggest year in history
So the rising open interest and funding rates don’t change the fundamentals around BTC and ETH — fresh all-time highs are still all but guaranteed this cycle. They’re simply a sign that the crypto market is getting away with itself. Such frantic trading isn’t just down to professional traders or long-term believers in crypto — it also indicates a rise in FOMO, and that’s a house of cards that can easily crumble in the short term.
In such frothy markets, it’s particularly important to have a solid strategy and stick to it, without allowing emotions to get in the way. For options traders, this means watching the charts and the data, not just the green candles. For buy-and-hold investors, it’s remembering that crypto is a volatile asset class and all signs point to further volatility incoming.
But most importantly, it’s a reminder for anyone in crypto to stay calm and avoid getting carried away with all the excitement of assets soaring towards their ATHs. There will be plenty more chances to get excited in the coming months. It’s those who keep their cool amid the market turbulence that will be the most successful in this bull run.
Lucas Kiely is the chief investment officer for Yield App, where he oversees investment portfolio allocations and leads the expansion of a diversified investment product range. He was previously the chief investment officer at Diginex Asset Management, and a senior trader and managing director at Credit Suisse in Hong Kong, where he managed QIS and Structured Derivatives trading. He was also the head of exotic derivatives at UBS in Australia.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
#Wrire2Earn #Ethereum(ETH) to the moon
LIVEBinance News
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Ethereum(ETH) Surpasses 3,700 USDT with a 6.68% Increase in 24 Hours
On Mar 05, 2024, 04:02 AM(UTC). According to Binance Market Data, Ethereum has crossed the 3,700 USDT benchmark and is now trading at 3,704.850098 USDT, with a 6.68% increase in 24 hours.
#Write2Earn #Btc only
LIVEBinance News
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Bitcoin Reaches Historic High Against Japanese Yen
According to BlockBeats, on March 5th, the exchange rate of Bitcoin to Japanese Yen reached a historic high, with 1 Bitcoin being equivalent to 10,267,442.84 Yen. This milestone highlights the growing strength of the cryptocurrency in the global market.
LIVEBinance News
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TRON to Launch Bitcoin Layer 2 Solution
According to BlockBeats, on February 15, Justin Sun announced on social media that TRON will launch its Bitcoin Layer 2 solution. This integration will not only connect TRON with Bitcoin but also promote the inflow of funds into the Bitcoin network, injecting financial vitality into Bitcoin. The roadmap revealed by Sun includes three stages:
In the α stage, Bitcoin can be accessed through cross-chain connections with the TRON network. Assets based on the Bitcoin network will be expanded to TRON. Efforts will be made to integrate various TRON tokens such as USDT, TRX, BTT, JST, SUN, NFT, WIN, and USDC into the Bitcoin network through cross-chain technology. This will enable TRON's tokens to seamlessly interact and interoperate with the Bitcoin network. Plans also include investing in user-friendly wallets and tools that support BRC-20 tokens.
In the β stage, TRON will collaborate with multiple Bitcoin Layer 2 protocols and gradually announce significant partnership relationships. These collaborations will enable TRON users to participate in major Bitcoin Layer 2 network re-staking plans, supporting the development of the Bitcoin Layer 2 ecosystem through TRON's diversified asset portfolio.
In the γ stage, the release of the integrated TRON, BTTC, and Bitcoin network Layer 2 solution will mark an important milestone. The solution introduces a protocol compatible with Bitcoin, aiming to maintain the speed and low cost of the POS system while combining with BTC Layer 2 to ensure the security of POW and UTXO.
In the α stage, Bitcoin can be accessed through cross-chain connections with the TRON network. Assets based on the Bitcoin network will be expanded to TRON. Efforts will be made to integrate various TRON tokens such as USDT, TRX, BTT, JST, SUN, NFT, WIN, and USDC into the Bitcoin network through cross-chain technology. This will enable TRON's tokens to seamlessly interact and interoperate with the Bitcoin network. Plans also include investing in user-friendly wallets and tools that support BRC-20 tokens.
In the β stage, TRON will collaborate with multiple Bitcoin Layer 2 protocols and gradually announce significant partnership relationships. These collaborations will enable TRON users to participate in major Bitcoin Layer 2 network re-staking plans, supporting the development of the Bitcoin Layer 2 ecosystem through TRON's diversified asset portfolio.
In the γ stage, the release of the integrated TRON, BTTC, and Bitcoin network Layer 2 solution will mark an important milestone. The solution introduces a protocol compatible with Bitcoin, aiming to maintain the speed and low cost of the POS system while combining with BTC Layer 2 to ensure the security of POW and UTXO.
LIVECointelegraph
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BTC Price Due $55.4K Next Amid Warnings Over End of Bitcoin 'euphoria'
Bitcoin (BTC) is on the way to $55,000 this week — but warnings of a new bear market are already surfacing.
In his latest analysis on X (formerly Twitter) on Feb. 14, popular trader Titan of Crypto confirmed a $55,400 BTC price target next.
BTC price: Ichimoku analysis points higher
Bitcoin bulls continue to fight for the road toward all-time highs, with resistance around $52,000 currently forming the battleground.
Titan of Crypto, capturing overall market sentiment, suggested that “extremely bullish momentum” could take BTC/USD another 6% higher in the coming week.
Uploading a weekly chart including Ichimoku Cloud data, he outlined one more upside target left to hit, with two already achieved.
“Both target 1 & 2 have been hit but $50,900 is a strong level. If Bitcoin manage to close a weekly candle above, target 3 at $55.4k is next,” part of the accompanying commentary stated.
“Note that given the extremely bullish momentum target 3 has high chance to get hit even before the end of the week.”
BTC/USD weekly chart with Ichimoku Cloud data. Source: Titan of Crypto/X
As Cointelegraph reported, Ichimoku currently shows a rare bullish setup on weekly timeframes, with BTC price now clearing major resistance features.
Trader cautions over "unhinged greed" coming to Bitcoin
Looking ahead, however, concerns over a potentially “overheated” market are leading to BTC price downside predictions.
Related: Bitcoin bulls flirt with $69K BTC price target as crypto market nears $2T
In a lengthy X post, trader and analyst Credible Crypto warned that even if existing all-time highs are exceeded and BTC/USD passes $100,000, the odds of a snap correction are increasing.
This, he says, represents natural market dynamics — despite heavy inflows into the spot Bitcoin exchange-traded funds (ETFs), nothing can remain in “up only” mode indefinitely.
“At the end of the day, for every major parabolic rise there is a major crash, and vice versa,” he wrote.
“You don't get unhinged greed and euphoria (and the vertical price appreciation that comes with it) without an equal and opposite reaction when that euphoria peaks.”
Credible Crypto referenced another post by trader and YouTuber TXMC Trades, who earlier told readers not to trust in ETF inflows propelling Bitcoin higher ad infinitum.
While I do think that we are on an aggressive path to new all time highs at the moment, the tweet below is important to cement into your mind- as there will be a point in the relatively near future when a major crash/correction will be deemed "impossible" because we "are in a new… https://t.co/mYghO2GE4s
— CrediBULL Crypto (@CredibleCrypto) February 14, 2024
Others also maintain an air of caution over BTC price strength. For Michaël van de Poppe, founder and CEO of MN Trading, the market is already “slightly overheated.”
“I wouldn't be unhappy if we got a slight correction to return to reality,” he concluded on the day.
The inflow in the ETF is great for #Bitcoin. However, it's not the sole argument for the markets to move. If I look at this clean chart, it suggests that we're:- Super bullish.- Slightly overheated.I wouldn't be unhappy if we got a slight correction to return to reality. pic.twitter.com/ZNnoNQGeeK
— Michaël van de Poppe (@CryptoMichNL) February 15, 2024
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
In his latest analysis on X (formerly Twitter) on Feb. 14, popular trader Titan of Crypto confirmed a $55,400 BTC price target next.
BTC price: Ichimoku analysis points higher
Bitcoin bulls continue to fight for the road toward all-time highs, with resistance around $52,000 currently forming the battleground.
Titan of Crypto, capturing overall market sentiment, suggested that “extremely bullish momentum” could take BTC/USD another 6% higher in the coming week.
Uploading a weekly chart including Ichimoku Cloud data, he outlined one more upside target left to hit, with two already achieved.
“Both target 1 & 2 have been hit but $50,900 is a strong level. If Bitcoin manage to close a weekly candle above, target 3 at $55.4k is next,” part of the accompanying commentary stated.
“Note that given the extremely bullish momentum target 3 has high chance to get hit even before the end of the week.”
BTC/USD weekly chart with Ichimoku Cloud data. Source: Titan of Crypto/X
As Cointelegraph reported, Ichimoku currently shows a rare bullish setup on weekly timeframes, with BTC price now clearing major resistance features.
Trader cautions over "unhinged greed" coming to Bitcoin
Looking ahead, however, concerns over a potentially “overheated” market are leading to BTC price downside predictions.
Related: Bitcoin bulls flirt with $69K BTC price target as crypto market nears $2T
In a lengthy X post, trader and analyst Credible Crypto warned that even if existing all-time highs are exceeded and BTC/USD passes $100,000, the odds of a snap correction are increasing.
This, he says, represents natural market dynamics — despite heavy inflows into the spot Bitcoin exchange-traded funds (ETFs), nothing can remain in “up only” mode indefinitely.
“At the end of the day, for every major parabolic rise there is a major crash, and vice versa,” he wrote.
“You don't get unhinged greed and euphoria (and the vertical price appreciation that comes with it) without an equal and opposite reaction when that euphoria peaks.”
Credible Crypto referenced another post by trader and YouTuber TXMC Trades, who earlier told readers not to trust in ETF inflows propelling Bitcoin higher ad infinitum.
While I do think that we are on an aggressive path to new all time highs at the moment, the tweet below is important to cement into your mind- as there will be a point in the relatively near future when a major crash/correction will be deemed "impossible" because we "are in a new… https://t.co/mYghO2GE4s
— CrediBULL Crypto (@CredibleCrypto) February 14, 2024
Others also maintain an air of caution over BTC price strength. For Michaël van de Poppe, founder and CEO of MN Trading, the market is already “slightly overheated.”
“I wouldn't be unhappy if we got a slight correction to return to reality,” he concluded on the day.
The inflow in the ETF is great for #Bitcoin. However, it's not the sole argument for the markets to move. If I look at this clean chart, it suggests that we're:- Super bullish.- Slightly overheated.I wouldn't be unhappy if we got a slight correction to return to reality. pic.twitter.com/ZNnoNQGeeK
— Michaël van de Poppe (@CryptoMichNL) February 15, 2024
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.