There are other reasons for Cardano’s price increases in previous weeks
According Whale ADA, a Twitter account focused on the Cardano community, there could be other reasons for Cardano’s price increases over the previous weeks. Besides the positive expectations surrounding Vasil’s upcoming hard fork, ADA Whale cites other reasons, such as “on/off chains, faulty staking mechanics, VC dumps, and overleveraged chaos elsewhere behind it.”
According to reports, Three Arrows Capital, or 3AC, a leading hedge fund in the space, is apparently nearing insolvency after $400 million in liquidations.
blockchain analytics company Nansen says 3AC lenders continue to come forward as the fund, which managed $10 billion in assets in March, failed to respond to margin calls and thus liquidated its cryptocurrency holdings.
Celsius, the embattled cryptocurrency lending platform, announced on Monday that it was suspending all withdrawals, adding to the market’s already-stressed state. Concerns about the firm’s solvency have been raised since the value of its assets has dropped by more than half since October. In the same timeframe, CEL token has lost 97% of its value.
As previously reported by U.Today, Cardano investment products have received minor positive inflows over the past week, compared to the huge outflows seen for Bitcoin and Ethereum.
Coinshares reported negative outflows of $102 million in the past week, with Bitcoin accounting for $57 million, bringing its month-to-date outflows to $91 million. Ethereum likewise recorded outflows of nearly $41 million, bringing total year-to-date outflows to $387 million.
Cardano price
The cryptocurrency’s market cap has fallen below $1 trillion, registering $895 billion at press time, according to data from CoinMarketCap. Cardano was also down 16% last week, after hitting a low of $0.4366 before partially bouncing back.
At the time of publication, Cardano was trading up 1.28% at $0.50. According to IOG, preparations for the Vasil hard fork upgrade have reached the final mile.
