Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, is experiencing a surge in Open Interest (OI) amid its bullish price performance. In the last 24 hours, Cardano OI jumped 2.69% and 0.83% in the past hour, per CoinGlass data. The total Open Interest now stands at 915 million ADA within the time frame, valued at $1.11 billion.
Implications of Cardano’s Open Interest
For context, Open Interest measures the total outstanding derivatives contracts on the market. Traders can use this metric to determine their exposure to an asset. In the case of ADA, the 2.69% increase in OI suggests that more traders are entering the market to purchase the asset.
This heightened buying activity could indicate an attraction triggered by ADA’s price performance in the last seven days. ADA has increased by 10.93% in the past week and over 225% in the past month.
Moreover, the CoinGlass data shows increased trading activity across exchanges, including Binance, Bidget, Bybit, OKX and others. Binance exchange led the distribution by 325.99 million ADA worth $394.9 million. Bybit and Bidget came behind with 284 million ADA and 136 million ADA, respectively.
The distribution shows increasing confidence among investors and exchanges betting on Cardano. This uptick in OI might improve liquidity for ADA, as its price has retained a 3.27% rise to $1.21. Analysts believe traders could execute large trades without causing substantial price volatility if ADA sustains this momentum.
Major Cardano milestones
The Cardano blockchain has shown impressive performance in the last few months, positioning itself as a leader in the crypto space. Notably, coindatacap reported that the total number of transactions for Cardano has crossed the 100 million milestone.
Cardano founder Charles Hoskinson also highlighted a notable achievement by Hydra, the blockchain’s scaling solution. The blockchain recorded 134,464 transactions per second (TPS) from load testing of Doom, a gaming title on Hydra.
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