Cardano trading volume at record levels: what's behind it?

Cardano trading volume at record levels: what's behind it?

Cardano (ADA) trading volume has seen a notable increase over the past week, with over $13 billion moving daily across the Cardano blockchain. Much of this volume comes from crypto whales investing in the cryptocurrency. With this impressive trading volume, the Cardano network has even eclipsed Dogecoin and Litecoin, two other popular cryptocurrencies.

Despite the rapid growth in trading volume, the number of active Cardano wallets decreased noticeably, which is due to various factors. The generally pessimistic mood in the crypto market as well as Cardano's comparatively lower price growth compared to other cryptocurrencies may have contributed to this. The current figures show that Cardano trading volume has exceeded that of Litecoin by five times and is even 16 times higher than that of Dogecoin.

Despite Cardano's high trading volume, the cryptocurrency recorded a loss of 11.24% in value over the last seven days. Cardano’s market cap also fell from $18.5 billion to $16 billion. These developments make it clear that increased trading volume does not necessarily indicate an impending uptrend. At the time of reporting, the ADA token is priced at $0.4508.

Current events on the crypto market show that despite Cardano's high trading volume, the price loss and the generally negative mood in the market can lead to uncertainty. It remains to be seen how Cardano will develop in the coming weeks and whether investments make sense at this point. Investors could find alternatives in younger projects that may offer higher return potential and are not yet fully exploited.