Even while the broader market suffers a notable sell-off resulting in $435 million in crypto liquidations, Cardano (ADA) has seen a remarkable 162% spike in trading volumes.
With major digital currencies like Bitcoin (BTC) seeing significant price declines, the market for cryptocurrencies is under great selling pressure and this has helped to cause the general market fall.
Cardano falls nearly 7% in the last 24 hours to trade at $0.375 at press time, hence it is not immune to this bearish trend.Last week, around $600 million was taken out of digital-asset products according recent Coin Shares data, the largest outflow since March.
Cardano’s Remarkable Volume Surge
Consistent inflation worries have caused traders to lower their expectations for a Federal Reserve interest rate reduction this year, therefore severely compromising speculative assets as cryptocurrency.
According to CoinGlass, the latest market collapse has resulted in about $435 million in crypto liquidations affecting a variety of digital assets. About $360 million of these liquidations came from long investors hoping for more price gains.
Cardano has seen a remarkable increase in trade volumes despite these adverse circumstances. With 162% increase in trading volumes over the past 24 hours, ADA’s trade volume now stands at $574.9 million, claims CoinMarketCap. Given the general collapse of the market, this increase is quite noteworthy.
Though there are several causes for the increase in ADA’s trading volume, they could point to strategic investor posture. High volatility usually results in more trading activity since traders buy and sell in great volumes.
Moreover, Cardano has lately gained more attention from institutional investors, which could have helped to drive trade volumes. It is still to be seen whether the cryptocurrency will profit from the present rise in interest or if it will keep its status quo among the present market conditions as the market keeps observing ADA’s performance.
