IMPORTANT POINTS:
- Cardano records a 40% increase in value this year, highlighting a 54% increase in staking activity in the last 24 hours.
- The total amount of ADA staked reaches $7.94 billion, with 63% of the total supply committed to the protocol.
- ADA is trading close to its price from a year ago, with significant resistance at $0.40 that could define its near-term price path.
Cardano (ADA) has seen an impressive 40% surge so far this year, accumulating 31% in October alone. This phenomenon is due to a growing demand for its native token that investors can stake in exchange for rewards.
Standing out in the cryptocurrency market, Cardano ranks third in terms of staking market capitalization, according to data from StakingRewards.com. As of November 7, there is $7.94 billion at stake on the Cardano network, representing a total of 22.98 billion ADA tokens locked by validators and delegators on the protocol.
With a market capitalization of $11.83 billion, 63% of all existing ADA are tied up in the protocol’s staking system. These validators are expected to receive rewards equivalent to 3% of the staked amount annually. However, with a “Real Reward Rate” – adjusted for Cardano supply inflation – of 0.38% per year.
Despite this, ADA staking is trending up with a 54% increase in the last 24 hours. Following an even higher trade volume trend, with an increase of 103% in the same period.
Cardano’s monthly chart reflects the growing staking demand in an uptrend. ADA is trading at $0.35 at press time, reaching a high of $0.37 on November 6, which represented an intraday loss of 4.3%.
Furthermore, Cardano has accumulated gains of 16% in the week as its capitalization increased by $2 billion. Meanwhile, ADA is trading near its price from a year ago, at $0.40 per token. This area marks an important resistance that must be overcome for investors to see higher levels.
Cardano’s ability to break the $0.40 zone will depend on whether demand can continue to grow in its ecosystem.
Essentially, the upward trend of Cardano staking is a positive sign that investors are not willing to sell, but rather to stake their purchased ADA. Future news and developments could influence the performance of this cryptocurrency in the coming weeks.
