Diamond Hands: Cardano ($ADA) Median Hold Time on Coinbase Nears 200 Days
Cryptocurrency users on the Nasdaq-listed exchange Coinbase are holding onto the native token of the smart contract platform Cardano ($ADA) for longer periods of time. According to data from Coinbase’s price pages, the typical hold time for its users invested in Cardano is now 194 days, significantly higher than the typical hold time of other major cryptocurrencies such as Bitcoin ($BTC) and Ethereum ($ETH).
Coinbase’s price pages further show that Cardano is the 6th most popular cryptocurrency on the platform, and that the cryptocurrency was mentioned in 18,800 out of 1.86 million social media posts since February 14, marking a 4.41% increase in volume. Most users on social media are “mostly neutral” on the cryptocurrency, as $ADA has recorded its highest returns in 18 months in January of this year after its price rose 58.9% to $0.39. Its performance was the best it has seen since August 2021, and made it one of the strongest assets by performance among the top digital currencies.
According to CryptoCompare’s latest Asset Report, Cardano outperformed the MVIS CryptoCompare Digital Assets 100 Index (MVDA), a market cap-weighted index that tracks the performance of the 100 largest digital assets, recording a return of 31.7%. This was accompanied by a spike in trading activity, with its trading volumes on centralized exchanges rising 158% to $9.87 billion. The surge marked the first increase in trading volume the cryptocurrency has seen in 13 months in a “much-needed rebound after hitting the lowest monthly trading volume since October 2020 in December 2022.”
The Total Value Locked (TVL) on the Cardano blockchain also saw an increase in January, rising 49.9% to $99 million. This marked the first increase in TVL in six months and was the highest recorded on the Cardano network since August 2022.
Coinbase’s price pages note that a long hold time “signals an accumulation trend” while a short hold time “indicates increased movement of tokens.” Cardano’s typical hold time on the exchange has notably kept on rising since the feature was added, demonstrating that the cryptocurrency is gaining popularity among users.
The increasing popularity of Cardano is likely due to its strong performance in 2021 and its potential to become a leading smart contract platform. The project is backed by a strong team of developers and is designed to be a secure and efficient platform for decentralized applications. Additionally, the project is supported by a large community of users and developers that are actively working on improving the platform.
Cardano has come a long way in a short amount of time, and its increasing popularity among Coinbase users is a testament to its potential. As the platform continues to develop and the team works to improve the platform, we can expect to see more and more users investing in Cardano and holding onto it for longer periods of time.
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