ADA price spikes by 11% as cryptocurrency market rebounds
Cardano’s price followed the general market trend and reached the important psychological resistance level of $1 on the first day of trading in March. The price spike was most likely caused by the rapidly changing market trend, according to CoinMarketCap.
According to the website, the cryptocurrency has faced an 11% price increase and has almost reached the $1 milestone for the first time since the end of February. In addition to the rapid price increase, ADA has faced a spike in trading volume that has reached $1.8 billion.
Previously, ADA traded for five days in the range and reached the local low on February 24 after falling below $0.75 for the first time since February 2021.
As U.Today previously reported, Cardano’s TVL reached a new milestone in February with more than $120 million worth of users’ funds being locked in various smart contracts on the chain. As always, the largest volume of locked funds was observed on the SundaeSwap platform.
Long-term performance of the Cardano market
While the short-term movement of cryptocurrency brings profits to investors, Cardano’s long-term performance is far from the best in the cryptocurrency market. According to on-chain and market data from IntoTheBlock, less than 12% of all ADA holders make a profit with cryptocurrency.
Such a disbalance in profitability in assets is more likely caused by the holders’ composition. As the indicator suggests, 75% of all ADA holders have entered the cryptocurrency in the last 1-12 months. Most likely, the majority of investors bought the asset during its bullrun to $3.
At press time, Cardano is trading at $0.93 with a price increase of 10% in the past 24 hours.
