Cardano (ADA): From the Perspective of an Institutional Investor
Following a robust growth in its prices and a number of noteworthy milestones, Cardano had a great 2021. As investments flowed in, this run of form became the foundation for institutional involvement in the network.
May saw a huge increase in institutional investments in cryptocurrencies, as institutions became more aware of the projects’ environmental sustainability.
Cardano’s Increasing Institutional Investments
Cardano has been accumulating institutional investments in recent months, totaling $20 million since the beginning of the year.
May was a fantastic month for bitcoin, with the greatest weekly inflow of capital from institutions.
Following a decrease in interest in BTC and ETH, a record high of $10 million was poured into Cardano. In comparison, massive withdrawals of $110.9 million and $12.6 million from BTC and ETH were seen in the week in review.
Cardano has recently formed a number of high-profile agreements with industry heavyweights. It partnered with Lykke Corp, a Swiss blockchain company, in July. Cardano had already formed a deal with COTI to function as a payment gateway provider for the cryptocurrency.
Grayscale’s launch of the Cardano Trust was well received, as it brought Cardano to the attention of more institutional investors.
Why is Cardano Appealing to Institutional Investors
The institutional interests in Cardano can be attributed to a number of factors. The most notable benefit of Cardano’s usage of a proof-of-stake approach is its environmental sustainability.
Following Elon Musk’s decision to restrict Tesla from accepting Bitcoin due to excessive energy usage and climate concerns associated with the mining process, environmental debates erupted.
Cardano, dubbed a “green coin” by cryptocurrency specialists, attracted institutional investors. Cardano hit an all-time high of $2.46 as a large amount of money flowed out of Bitcoin.
Furthermore, smart contract functionality has been introduced through technology developments like as the Mary hard fork and the Alonzo update, making them desirable to investors.
Cardano has received positive support as a result of institutional investment and high-profile partnerships. In May, despite widespread adverse sentiment, Cardano stayed positive and surged to an all-time high of $2.46.
Cardano is currently the fifth-largest cryptocurrency in terms of market capitalization, with a market valuation of $42 billion, and has surpassed the 1 million wallet milestone.
Cardano has a maximum supply of 45,000,000,000 ADA, with 31.9 billion currently in circulation. The fact that $31 billion worth of Cardano is staked in over 650,000 staking addresses is amazing.