Cardano’s recent performance of more than 750% year-to-date is impressive. Why Cardano has so much hype right now?
Coinbase Pro Listing
Coinbase Pro listed Cardano on their platform, therefore making it possible for trading. Since the last Thursday, Cardno has started its steady climb. By being listed on Coinbase, Cardano started making its way more and more into the crypto world. This is because of the Coinbase effect. That term is used to describe the power COINBASE has on cryptocurrency prices.
Also, Cardano was added to the Bloomberg Terminal on Tuesday. Investors will now have access to view Cardano on the terminal, though early reports suggested price information wasn’t available as of yet. One of the key investment criteria for many crypto holders is assessing how mainstream a given cryptocurrency is before buying. For those seeking to hold these as currency, the more ubiquitous a given token is, the more it may represent a store of value.
Big Banks Turn Bullish On Cryptocurrencies
Cardano is the third-largest cryptocurrency in the world. The people who invested in Cardano can revel because of this fact.
Specifically, the cryptocurrency segment is viewed by Morgan Stanley as nearing an inflection point, turning from a highly speculative trading tool to a potential investment. But on the other hand, he was quick to point out that significant hurdles have to be overcome for such a scenario to materialize. First, cryptocurrencies like Cardano will need to operate in a more regulated environment. Liquidity, product availability, and growing institutional investor interest are three other factors that need to be taken into account.
Morgan Stanley’s view, similar to my own, is that these are still speculative assets carrying high levels of risk. Thus, the bank says to focus on portfolio design and discipline with portfolio sizing. That said, this is certainly noteworthy news. Investors have bid cryptocurrencies higher in recent trading, with such news being a likely contributor to the rapid rise in the value of cryptocurrencies like Cardano.
Major Update Driving Cardano Higher
Today, NFTs gained a lot of popularity. Many people want in and cryptocurrencies are supporting these digital artifacts. They are seeing very impressive gains. Cardano has an update in its protocol. The people who invested in Cardano, think that this is game-changing. The new update introduces native tokens and also multi-asset support. That would bring new use cases for Cardano. Some believe Cardano has the potential to chip away at the early-mover advantage of Ethereum.
While it’s likely too early to say which cryptocurrency option will ultimately win out, this is a speculator’s game at the moment. Cardano has tons of momentum, and in this market, momentum is more powerful than anything else, including fundamentals, right now.
