Broader market uptrends and Solana’s network outage have triggered this week’s rise in ADA price.
This week, Cardano
ADA
tickers down
$0.558
has experienced a notable rise, rising over 8.5% to reach $0.535 by Feb. 8. The bulk of this weekly appreciation, approximately 6.5%, occurred in the last 24 hours,
driven by a confluence of technical indicators, on-chain data, and foundational developments.
Overall market trend pushes Cardano up
Cardano’s rise this week mirrors upside sentiment elsewhere in the crypto market. For instance, Bitcoin
BTC
tickers down
$50,118
and Ether
ETH
tickers down
$2,661
, the leading cryptocurrencies by market cap, have risen by over 4% and 5.25% week-to-date, respectively.
The daily correlation coefficient between Cardano and Bitcoin has remained mostly positive throughout history. As of this week, it was above 0.75.
This uptrend indicates a heightened interest in crypto assets overall,
fueled by the U.S.’s recent approval of Bitcoin-based spot exchange-traded funds (ETFs) and the anticipation surrounding Bitcoin’s next halving event in April.
Travis Kling, the chief investment officer at Ikigai, mentions the Federal Reserve’s rate cut policy as one
of the major catalysts behind the crypto market rally, which, in turn, is boosting ADA price. He noted:
“A week ago, the market was pricing six cuts starting in March. Last week, [Jerome] Powell told you to
go [in] March. Last night on 60 Minutes, he told you three cuts, not six…result? Stocks up. Crypto up.”
Increased on-chain activity
In addition to broader market trends, Cardano’s price rally has recently taken cues from the recent improvements in its network activity.
The total-value-locked (TVL) across the Cardano ecosystem has grown from 660.30 million ADA to
720.91 million ADA in the last 24 hours.
A rising TVL suggests more assets being locked in Cardano smart contracts, suggesting growing adoption.
