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Cardano (ADA) extends recent rally, jumps 14% in 24 hours

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06
Jun
  • Increasing NFT trading volume on Cardano blockchain causes a 14 percent rise in ADA price.
  • Improving crypto market sentiment also pushes up ADA’s price.

NFT trading volume on the Cardano blockchain has been increasing in recent weeks. Hence, it’s no wonder that the price of Cardano’s native token (ADA) is rising. ADA price gained 13.38 percent in the last 24 hours and now trades at $0.6359 according to the latest Coinmarketcap data.

This rise makes Cardano the biggest gain among the top 100 digital assets. Theta network (THETA) and Tezos (XTZ) rank second and third respectively, in terms of gains. Its gain is now 23 percent in the last seven days. In the last week, there has been a lot of noise about an upgrade to the blockchain and the addition of more functionalities.

That’s one of the reasons for ADA’s price surge above most of the other leading digital assets. However, analysts claim that the rising interest in Cardano’s NFT functionalities is the main reason for the ADA price rise on June 6.

Cardano’s NFT trade volume makes it the third biggest NFT blockchain

Data from various analytics on Monday show that Cardano’s 24-hour NFT trade volume hit the $1.35M mark. Thus, the blockchain is now the third biggest NFT blockchain. Ethereum and Solana occupy the first and second spots respectively.

Industry analysts also claim that some NFT users have been moving their assets to Cardano from Solana due to the latter’s recent outages. Many Twitter NFT traders using Solana have stated that they would be moving to Cardano. They have been frustrated by the constant outages on the Solana network.

A recent Cryptoslam data shows that Solana’s 24-hour NFT trade volume decreased by about 20 percent over the last 24 hours. By estimate, this means that the Solana network has lost nearly $2.4M worth of NFT sales.

The decline in NFT sales also affected the network’s native token (SOL). SOL lost more than 6 percent in the last seven days. Land sales in Cardano’s cornucopias are responsible for 5.1 percent of the total NFT sales on the Cardano network. Thus, this play-to-earn game accounts for the biggest NFT trade volume on the network.

Nevertheless, JPG Store remains the biggest NFT marketplace on the blockchain. It accounts for more than 90 percent of the daily NFT sales on the network. The Cryptoslam data further states that Cardano’s daily NFT sales make it overtake ImmutableX’s own.

Why ADA price keeps increasing

The huge rise in NFT trade volumes on Cardano has been beneficial to ADA. However, the token’s price has also soared due to expectations from the next network update. According to Cardano founder, Charles Hoskinson, some new features will be added to the blockchain following the upgrade. He also said those features will be made known this week.

Also, Github data states that there is a new peak record in the number of projects being developed on the Cardano blockchain. Hence, large whale traders have shown more interest in ADA by accumulating more of it.

This factor is another reason for the recent increase in the token’s value. Cardano’s market cap has also risen by more than $2.5B in the past 24 hours. Its market cap is now $21.55B from $18.99B on the last day. These events have led many analysts to predict that ADA price will reach $1 before this month-end.

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