Cardano Thrives While Ethereum And Bitcoin Collapse: Analysis

Cardano thrives after the weekly correction which was a sobering reminder that the crypto market is as volatile as ever. Ethereum and bitcoin collapsed on the other hand so let’s see why is ADA performing well in today’s Cardano news.

Cardano is up as the excitement around the upcoming smart contracts and DeFi capabilities are growing while the Grayscale BTC and ETH Trusts are trading shares at discount prices.  After the sharp market pullback and weekly correction, the BTC price dropped from a peak of $58K to a low of $49K. The market stabilized while retail investors were trying to buy the dip and showed some troubling trading signals that left the market in a precarious place.

The @Grayscale Bitcoin Trust has traded at a discount to NAV all day. If this persists the Trust will have no more inflows and will therefore not be buying any more #Bitcoin. Without Grayscale, the biggest daily buyer, where will the new buyers come from to support the price?

— Peter Schiff (@PeterSchiff) February 23, 2021

Bitcoin is now set at $44,454 which is an increase of 1.68% in the past day but got down over 15% over the week. Ethereum’s price is in even bigger trouble as it is now valued at $1482 marking a drop of 0.18% in the past day which is a continuation of the pullback that took 26.12% off its value in the past week. The downturn happened after a week of absent news on institutional investments. Earlier this month, BNY Mellon announced plans to add crypto services to its businesses and Tesla also disclosed an investment of $1.5 billion. Black Rock was next as it announced to dabble in Bitcoin. Also, last week we saw Canada launch two BTC ETFs.

We saw that both Grayscale trusts are trading below the value of the crypto assets and this is the lowest point in five years recorded. The CIO of QCP Capital Darius Sit, said that traders should not worry as this is normal for ETFs and similar investment vehicles. But other analysts are concerned that this could depress the price of the assets and will hurt the lending markets. BTC and ETH are not the only losers afterall.

Binance coin, Chainlink, Litecoin all dropped by 25% in the past week. Binance now costs $230 while Litecoin trades at $175. Chainlink’s valued at $25.62 and from all of the droppings in this bearish market, Bitcoin Cash and Aave took the hardest hits as they were both down by 30%. BCH is set at $493 and Aave at $343. Cardano costs $1.45 marking a 40% increase in the past week and 30% in one day with most of the excitement being attributed to an expected hard fork that comes from the start of March.

Features like Defi, NFT, and smart contracts are all coming to the Cardano blockchain which is why Cardano thrives. The ADA token is now valued at $1.47, marking a 40% in a week. Also, Stellar is looking great after it increased 12% in the past day, reversing the bearish weekly trend that shaved 17% of its price.