Big investors are big influencers on markets and recently they have identified Cardano (ADA) and Ethereum (ETH) as crypto assets they would get into, according to a report from CoinShares. The report titled Digital Asset Fund Flow weekly identified the second and third largest cryptocurrencies in the world as a better short-term investment alternative to Bitcoin itself.
Hardly a month or so ago, the crypto sector was in the midst of a short-term price squeeze and as a result, the market in general contracted in a big way. While Bitcoin itself also lost a lot in value, other smaller cryptocurrencies suffered a lot more with Ethereum losing more than 70% of its value and the likes of Cardano losing even more to the bearish onslaught.
However, the recent uptick in the index has pulled many of them back and while the losses haven’t been fully recovered, they are looking upbeat about the near future. The recent push of Cardano, Solana, Terra and others shows that there is considerable potential for the altcoin market to go into big bullish territory again, with or without any help from Bitcoin itself. While it is true that Bitcoin usually sets the trend for the rest of the market to follow, the altcoin sector has a tendency to de-couple from it from time to time, in both bearish and bullish tendencies. Altcoin promoters believe this is going to be that point in time.
According to the CoinShares report, almost $24 million have been invested into the altcoin derivatives and custodial funds during last week alone. This is around 14.3% higher than last week’s tally of just around $21 million. Both Ethereum and Cardano saw a lot of capital flight and that was reflected in their price indices as well as both recovered strongly. Cardano rose stronger than Bitcoin itself and is now sitting comfortably near the top as the third largest cryptocurrency by market capitalization.
One of the reasons behind the latest surge in demand for Cardano is because of its Alonzo upgrade which is set to be implemented on September 12. As a result of this upgrade, the network will see smart contracts functionality for the first time.
Bitcoin on the other hand saw an overall drop in derivatives investment as the price index stalled and then fell a little at the end of the week. However, this is only a short-term trend and altcoins are incredibly volatile to base investments on a week’s worth of research.
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