Cardano (ADA) has witnessed a significant 300% increase in exchange-traded product (ETP) inflows. An unexpected influx of capital from institutional investors could set the stage for a potential uptrend ahead of the Chang hard fork.
Cardano Fund Inflows Skyrocket 300%
On July 29, CoinShares, a leading company in the cryptocurrency ETP industry, published a weekly report on the flow of funds from various digital assets. Digital asset investment products saw relatively minor inflows of about $245 million over the past week, according to CoinShares.
Among the list of digital assets that recorded new inflows, Bitcoin (BTC) recorded the largest increase in inflows. The pioneering cryptocurrency received significant inflows of $519 million, reaching monthly inflows of $3.6 billion.
Even more impressively, Cardano saw a sharp influx of funds into its ETP, totaling around $1.2 million. This massive influx represents a whopping 300% increase from the previous week. Additionally, Cardano's strong performance has actually propelled it to second place among all cryptocurrency ETPs.
CoinShares, publishing a chart of the “Asset Flows” of Cardano and various other prominent cryptocurrencies, reports that institutional investors have invested a total of $11 million in Cardano-focused investment products. Additionally, Cardano's monthly fund inflow was around $2.4 million.
In its report, CoinShares also said that the launch of spot Ethereum exchange-traded funds (ETFs) was one of the largest capital inflows since December 2020. It also led to a staggering influx of $2.2 billion in new ETFs, while Ethereum (ETH) trading volumes surged 542%.
In the case of Cardano, after a 300% increase in ETP inflows, the price of the cryptocurrency showed a slight rebound from previous bearish trends. After rising to around $0.8 in March 2024, the Cardano price undergoes a correction phase, falling below the $0.4 mark.
Due to the fact that they were somewhat more positive regarding cryptocurrencies. Analysts such as "Sssebi" on X (formerly Twitter) concluded that Cardano was the most undervalued asset among the top 10 cryptocurrencies. The analyst said investors should remain bullish on Cardano, predicting positives for the cryptocurrency.
ADA Price Analysis Update
Although Cardano's price has been on a steady decline over the past few months, Cardano has steadily consolidated around the $0.4 price level, highlighting the cryptocurrency's strength and resilience in adverse market conditions. CoinMarketCap reports show that the cryptocurrency is currently trading at $0.4, reflecting a decline of 4.34% over the past 24 hours.
Analysts such as Sssebi continue to maintain a bullish outlook on the cryptocurrency, expecting future price gains during a bull cycle. According to Sssebi, Cardano is set to outperform the cryptocurrency market, fueled by its rapidly developing ecosystem of hundreds of decentralized applications (dApps).
