Cardano, a prominent altcoin in the cryptocurrency market, has seen a substantial surge overnight after the much-awaited Bitcoin Halving event as the altcoin community celebrates a staggering $1.5 billion treasury rise in value as reported by DefiLlama.
Cardano’s price has seen a 5.60% upswing to trade at $0.4874 according to Coinstats data. The green candle however lies 20% lower than the highs of the altcoin price reached earlier this month. This comes after the digital token changed its governance on treasury allocation to a decentralized system.
Following this, the Cardano community is fully empowered by the system to make fund allocation decisions and distributions upon majority agreement. This new approach has been with Cardano holding 1.23B ADA in its treasury funds, its new system deducting 0.3% from its reserves every 5 days together with accumulated fees which are used as epoch rewards.
Read Also: The Bitcoin Halving 2024: How Will It Impact Prices?
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Technical analysis
ADA has been experiencing a decline as of last week’s altcoin crush that was initiated by geopolitical feuds between Iran and Israel. The bear market led to a 20% plunge of the altcoin, it later retraced by 8%, a market-resilient move that proved the utility of the asset. At the time of writing, ADA is changing hands at $0.4906.
Cardano currently occupies the 10th position on the global crypto market chart with a live market cap of $17,200,064,878 ($17.2 billion). What is more, Cardano’s 24-hour trading volume has dropped by 9.27% to $518,390,540 showing more potential for the asset if the bulls are to remain persistent.
The Cardano derivatives market shows a 5.82% increase in open interest to reach $215.02 million. The options volume metric shows a contrasting view, declining by 92.94% as a result of the market volatility that led to a decrease in new options opened contracts.
Bitcoin Trajectory
Bitcoin has successfully marked its fourth halving event creating scarcity of the digital asset, thus potentially increasing its value as per principles of demand and supply.
This pivotal event has also impacted the revenues earned by miners, cutting it in half to 3.12 BTC. The exposure from traditional markets to Bitcoin through ETFs has also boosted the Bitcoin upswing as it acts as a bridge for investors who are not aware of the technicalities of the asset. It has also boosted institutional interest as traditional investment vehicles are incorporating hedge funds and pension funds in the cryptocurrency market.
With the broader cryptocurrency market ushering the Halving event with green candles, there is more hope.
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Read Also: Dogwifhat Leads With a 20% Surge Following Coinbase Support
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Maina Lewis
I'm a crypto enthusiast with a passion for breaking down complex blockchain concepts into clear, engaging content. Fueled by curiosity, I'm constantly researching the latest crypto trends and developments to keep readers informed and excited about the ever-evolving digital landscape. Whether you're a seasoned crypto investor or just starting your journey, I aim to empower you with the knowledge to navigate this dynamic frontier.