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Cardano (ADA) Open Interest of $580M Makes it The Third-Largest Futures Market
The Cardano (ADA) open interest futures rose to $580 million, outperforming Litecoin to become the third-largest offshoots market.
In February, Cardano allocated a hard fork and successfully incorporated the Mary upgrade to the testnet, modifying the blockchain into a multiasset network comparable to Ethereum.
This episode appears to be one of the justifications for the stunning 475% year-to-date rally of ADA, and the altcoin is now causing sudden waves in the derivatives markets.
After December 2020, ADA’s $81-million aggregate futures open interest rose to the present $580 million, making it the third-largest derivatives market, following Bitcoin (BTC) and Ether (ETH).
Data reveals that this was not immaculately a technical adjustment, as Cardano’s on-chain and trading metrics vastly outperform Litecoin’s (LTC).
One week ago, Litecoin dominated ADA’s open interest by 50% or by a greater gap. That all transformed over the past five days, as Litecoin’s aggregate futures position was sliced by 40%.
Despite encountering a comparable price correction to Litecoin’s 30% one between Feb. 20 and 22, ADA had $125-million long contract liquidations, approximately 19% of the open interest at that period.
ADA trading volume and on-chain metrics enhanced.
Volume is the major and leading indicator of investors’ interest. Nevertheless the price trend, low trading movement reflect a little user base or a deprivation of new entrants,
which is extremely complicated for cryptocurrencies as an emerging asset class.
ADA’s trading volume ascended in February, while Litecoin was unable to outweigh the $2 billion daily standard mark. Meanwhile, the ADA’s aggregate spot trading volume at exchanges currently settles at $2.8 billion.
Featured image credit: (cardano.org)