According to U.Today, Cardano (ADA) has seen a significant 162% increase in trading volumes despite a market sell-off that has led to $435 million in crypto liquidations. The cryptocurrency market is currently under selling pressure, with major cryptocurrencies, including Bitcoin (BTC), experiencing significant price drops. This has contributed to an overall market decline. Despite this bearish trend, Cardano has not been immune, falling 7% in the last 24 hours to trade at $0.375.
Recent data from CoinShares reveals that nearly $600 million was withdrawn from digital-asset products last week, marking the highest withdrawal since March. Persistent inflation has led traders to lower their expectations for a Federal Reserve interest rate reduction this year, which poses a challenge to speculative assets like cryptocurrencies. The recent market crash has resulted in approximately $435 million in crypto liquidations, according to CoinGlass data. The majority of these liquidations, amounting to $360 million, came from bullish or long traders who were expecting further price increases in the market.
Despite these bearish market conditions, Cardano has experienced a remarkable increase in trading volumes. Data from the crypto market ranking platform CoinMarketCap shows that ADA's trading volumes have surged by 162% in the last 24 hours, reaching $574.9 million. This surge is particularly noteworthy given the overall market downturn. The reasons for this increase in trading volume for ADA could be varied, but it may indicate investor positioning. Higher volatility often leads to increased trading volume as traders buy and sell in large quantities.
Cardano has recently gained popularity among institutional investors, which may have contributed to the rise in trading volumes. The market will continue to closely monitor ADA's price performance in the coming days to see if it can capitalize on the current surge in interest or maintain its current status.