What Explains Cardano’s Recent Surge?

What Explains Cardano’s Recent Surge?

Over the course of the week, the markets appear to have been regaining confidence. That would seem, then, to be a major factor behind Cardano’s price recovery over the last two weeks where its ADA token went from trading at a little over $0.14 to twice that at the time of writing. 

That’s a 100% surge in price compared to Bitcoin which gained just a little over 20% during the same period, and a wider market which, on aggregate, has surged 40%. There seems, then, to be something else at play. 

Stars Aligning?

One explanation has been new listings: over the last few days, Binance created new trading pairs for the Cardano token against both its own native token (ADA/BNB) and Tether (ADA/USDT). Huobi also listed the token which, according to at least one source, can explain its one-day 10% rise on April 17th

But these effects are likely to have played a relatively small part in Cardano’s recent price momentum. The trade pairs mentioned represent just over 5% of total trading volume. 

Some point to Cardano’s impending inclusion in Nano Ledger S hardware wallet technology, others point to the upcoming release of Cardano’s possible Q2 release of its Shelley iteration which, it is thought, opens the Japanese blockchain technology to the wider public. 

However, whilst all of these factors have likely contributed in a non-negligible manner to the recent bull run on its price, the explanation may yet lie elsewhere yet again. And it is the marked increase in trading volume on April 16th and 17th that may serve as the give-away. 

Those dates coincide with its listing on Huobi and the explanation, then, appears to be an obvious one. But digging a little bit further, one might notice that Huobi currently only accounts for 5% of trading volume of the ADA token. On the other hand, those dates also coincide with something else which largely went under the radar.

Cardano Team in British Parliament

Charles Hoskinson – mathematician, entrepreneur and one of the Cardano blockchain’s founders – sent out a tweet from one of the more interesting stops on his seemingly never-ending circuit of Cardano presentations.

His showing up at the British parliament during what appears to have been a general presentation of blockchain technology is indicative of Cardano’s larger appeal within establishment circles.

“You have to remember that Cardano’s brand – whether intended or not – is all about respectability,” states @jukeboxjury, a close observer of developments of the Cardano project on its Telegram channel. “It is headed up by established academics and business people who proceed with an almost extreme attention to due diligence.”

It is, in other words, a project which oozes the kind of respectability that attracts establishment types. Whereas the ethos driving technologies such as Bitcoin and Ethereum are a reflection of their open communities – casual, relaxed, occasionally libertarian – Cardano is almost a polar opposite: conventional, orthodox, almost regimented even and perhaps slightly aloof. 

Of all the blockchain platforms currently in existence or in development, Cardano seems to be the stand-out candidate for attracting interest from some most of the most powerful players out there. Whether this is ultimately the explanation for its recent surge in price remains debatable.

What seems less arguable, however, is that the stars appear now to be aligning for one of the Blockchain’s brightest prospects. The ADA token, barely a little over four months old now, is knocking at the door of the crypto world’s top five currencies by market cap. Not too surprising, perhaps, when you sit down to consider the company it keeps.