4 reasons why the price of Cardano (ADA) is up almost 100% in a week

TL;DR

ADA has witnessed a remarkable upswing of late, fueled by a broader crypto resurgence and other essential factors. More than 60% of ADA holders are now sitting on paper profits, a significant improvement from August lows, when nearly 90% were underwater. The ADA continues to focus

Cardano’s ADA has been among the best performing cryptos in the past week, with a price exploding roughly 93%. In fact, Dogecoin (DOGE) is the only one in the top 20 list to post more significant gains during the aforementioned period.

ADA continued its uptrend in the past 24 hours and is currently trading around $0.64, a level last seen in March of this year.

ADA price, Source: CoinGecko

Perhaps the most obvious factor contributing to its bull run is the recent announcement by Cardano founder Charles Hoskinson. A few days ago, he posted a 40-minute long video, which discussed a variety of topics, including the incoming administration of President-elect Trump.

Hoskinson revealed his intention to spend significant time next year working with US policymakers to help build a more comprehensive and potentially favorable regulatory framework for the cryptocurrency industry.

“Crypto policy should be written by the American people, the American crypto industry, and well-intentioned lawmakers who are willing to take the time to listen.”

The second element is the global crypto resurgence. Several hours ago, Bitcoin (BTC) touched a record high of $90,000, while the sector’s global market capitalization reached a new all-time high of $3.12 trillion.

To put things into perspective, well-known corporations like Microsoft, Google, and Amazon have smaller capital letters.

ADA’s rally coincides with the increase in total value locked (TVL) in the Cardano ecosystem. On November 12, the number surpassed $350 million, the highest in seven months.

TVL represents the total amount of assets deposited in Cardano’s DeFi protocols. An increase in the metric typically suggests increased usage and engagement within the network, which can indicate long-term potential and attract additional investors.

Trading volume on the Cardano chain has also increased recently. On November 10, it hit an eight-month high of more than $355 million.

Profitability increases

The revival of ADA prices has been very beneficial for its investors. According to data from IntoTheBlock, more than 60% of total holders are currently sitting on some paper profits. 38% are still below their initial investments, while only 1% are breaking even.

ADA profitability, Source: ITB

The profitability remains relatively low compared to other leading cryptocurrencies. For example, no BTC, DOGE and TRX investors are underwater (at the time of writing).

However, the picture looked much worse during the crypto market crash in early August this year. By then, hardly anyone holding ADA was sitting on paper profits as the asset’s valuation sank below $0.30.

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