Cardano Soars: Open Interest Surpasses The 915 Million Mark

Everything seems to be going well for Cardano. Its ecosystem is developing rapidly, and its native cryptocurrency, ADA, shows remarkable performance. However, despite recent gains, it remains far from the peaks reached in September 2021 at $3.09. These changes are accompanied by another key indicator: Open Interest (OI), which propels ADA into the spotlight.

Rising Open Interest: Cardano at the Heart of Trading

Amid a resurgence of interest, Cardano, always ready to surprise, sees its Open Interest (OI) soar. The latter, which measures the total number of outstanding derivative contracts, has surged by 2.69% in 24 hours, reaching 915 million ADA, equivalent to $1.11 billion according to CoinGlass. This dynamic is driven by:

• Binance, in the lead with 325.99 million ADA, valued at $394.9 million;
• Bybit, with 284 million ADA;
• Bidget, contributing 136 million ADA.

ADA’s 88% Surge: Hype or Real Momentum?

Cardano ripped 89% in two weeks, landing at $1.33, its highest in three years.

Open interest on ADA futures has hit a record $1.2B, raising questions about whether the market’s overleveraged or just testing new confidence.

The funding… pic.twitter.com/mmp9vQ7mf1

— Crypto Town Hall (@Crypto_TownHall) December 4, 2024

A growing enthusiasm that reflects a renewed confidence among investors and cryptocurrency exchange platforms. However, as a tweet from Crypto Town Hall reminds us:

“Is the rise of ADA a real momentum or just a passing fad?“.

If the increase in OI enhances the liquidity of ADA, it also reflects a rise in margins, with funding rates having dropped from 6% to 2.2%.

The Crypto ADA is Thriving: Signals of Strength, but Not Only

The recent performances of ADA are impressive: +89% in two weeks to peak at $1.33, its highest level in three years. However, this momentum is not limited to prices. The Cardano network shows significant advancements, as highlighted by Charles Hoskinson, its founder.

With 134,464 transactions per second completed via Hydra, its scalability tool, Cardano reaches a new technological milestone.

These results add to a heightened activity, marked by exceeding 100 million total transactions. However, the growth of the ecosystem remains uneven. Some analysts warn of a potentially overloaded market due to leverage effects. A burning question remains: Can ADA maintain this momentum while consolidating its bases?

While ADA shines through its performance and adoption, a new era is dawning with the rise of crypto ETFs. Bitcoin and Ethereum are leading the way, and altcoins like Cardano and Avalanche are set to follow, promising major upheavals in the market.