Cardano’s ADA Spikes 25%, Leads Gains in Crypto Majors

Bitcoin showed signs of bottoming out earlier this week, with the broader market adding some 4.4% in the past 24 hours.

AccessTimeIconMay 31, 2022 at 6:11 a.m. UTC
Updated May 11, 2023 at 5:24 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto markets added some 4.4% to overall capitalization in the past 24 hours as bitcoin (BTC) saw signs of bottoming out and traditional markets showed strength at the start of this week.

Bitcoin regained the $31,000 level in U.S. hours on Monday after nine weeks of losses. That move came amid a relief rally in Asian markets, and technical data suggesting the asset may have bottomed out between the $29,000 to $30,000 range.

Cardano’s ADA token led gains among crypto majors with a 17% rise to trade over 64 cents on Tuesday. Fundamental catalysts include a rise in the issuance of native assets on the network – over five million assets have now been minted on Cardano, data shows – and the upcoming Vasil hard fork, a network upgrade expected in June that would increase scaling capabilities.

Price-charts suggest ADA saw support at the 45 cents level. Readings on the Relative Strength Index (RSI) – a tool used by traders to calculate the magnitude of an asset’s price move – fell to nearly 33 earlier this week, which suggested early signs of ADA bottoming out. However, the token could see strong resistance at the 80 cents mark.

ADA bottomed out the past week, but resistance exists at the 80 cents mark. (TradingView)
ADA bottomed out the past week, but resistance exists at the 80 cents mark. (TradingView)

Ether (ETH) added 5.8% even as gas fees fell to lows. A fall in fees usually implies falling demand for the network, suggesting the move may have been led by traders betting on a market-wide revival instead of being driven by fundamental growth.

XRP rose 5%. Avalanche’s AVAX and Solana’s SOL added up to 4%. Meme coins dogecoin (DOGE) and shiba inu (SHIB) saw limited gains, rising just 3.8% and 2.3% respectively, to underperform the broader market.

Elsewhere, metaverse tokens saw a bump in prices. Axie Infinity’s AXS rose 46%, while The Sandbox’s SAND rose 11%. Growth in AXS came weeks after the game’s “Origin” version was launched in April, which created a demand for the tokens.

The relief in crypto markets comes amid optimism in Asian markets. Coronavirus cases in China dropped to under 100 for the first time since early March, spurring an increase in sentiment among traders betting on a wider economic recovery.

The rally in Asia continued on Tuesday. Hong Kong’s Hang Seng and China’s Shanghai Composite added over 0.70% since the session’s start, while futures on U.S. tech-heavy Nasdaq 100 gained 0.63%.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.