Cardano (ADA) has shown significant capital inflow following the announcement of its inclusion in the U.S. strategic crypto reserve. Experts note increased volatility and institutional interest in the altcoin.
Cardano Leads in Volatility
Cardano’s price surged following the strategic reserve announcement. Data shows a 600% spike in volatility, significantly outpacing other altcoins included in the plan. This is attributed to limited market liquidity compared to larger assets like Bitcoin and Ethereum. Open interest across major derivatives exchanges, such as Bybit, OKX, and Binance, shows the strongest percentage increase in contracts for ADA.
Capital Concentration Boosts Cardano
Capitalization of reserve-backed cryptocurrencies, including ADA, has increased since the announcement. Kaiko’s EAGLE index, which tracks assets likely to benefit from administration policies, also shows a 30% gain. Trading activity has concentrated on a select group of assets, with major altcoins capturing a larger share of market volume both in the U.S. and offshore.
Strengthening Long-term Cardano Outlook
Cardano stands out with positive returns year-to-date, contrasting with negative figures from most cryptocurrencies included in the strategic reserve. ADA has shown stability even amid market disruptions, reinforcing its long-term prospects.
Cardano's inclusion in the strategic crypto reserve has led to significant capital and volatility increases. With growing institutional interest and stability amid market disruptions, ADA's long-term outlook appears robust.
