- Demand for Cardano has exceeded Bitcoin, the altcoin has become a favorite for US investors.
- Potential use cases and high return on investment are the top factors driving interest for Cardano.
- Meanwhile, smart contract functionality in the upcoming Alonzo hard fork is likely to increase demand further.
Cardano emerged as a favorite among American users on eToro. The number of ADA holders has increased despite a delay in the highly anticipated Alonzo hard fork.
Institutional and retail demand for Cardano skyrocket
Institutional demand for Cardano has significantly increased over the past few months. Grayscale, a leader in digital currency investing, recently rebalanced its large-cap fund, which has offered 335.32% returns.
The asset management firm purchased ADA using proceeds from the sale of existing fund components. Now, the fund component per share is 66.3% Bitcoin, 26.5% Ethereum, 4.3% Cardano, 1% Bitcoin Cash, 1% Litecoin, and 0.9% Chainlink.
Likewise, retail investors in the US are becoming increasingly confident in Cardano’s potential. On eToro, ADA has replaced BTC by emerging as the most held cryptocurrency in the second quarter of 2021.
The social trading platform noted a 51% increase in demand for Cardano compared to the previous quarter.
Simon Peters, crypto market analyst at eToro said,
During Q2, Cardano provided a clearer roadmap for its upcoming Alonzo hard fork – currently in a testing phase. If successful, it will bring smart contract functionality by allowing the writing and deployment of smart contracts for the first time on the Cardano blockchain. This upgrade will be significant as it will enable developers to build projects on the network, helping Cardano to position itself as a real ‘competitor’ to the likes of Ethereum.
Peters mentioned that the upcoming Alonzo hard fork is driving investors’ optimism. A wide range of DeFi applications can be deployed on the Cardano Network when the smart contract functionality is enabled by the upcoming hard fork.
Interestingly, Ethereum’s founder Vitalik Buterin seems impressed by the strides that IOHK is making to improve the utility of the Cardano protocol.
There’s definitely interesting ideas in there. I do think Cardano takes a bit of a different approach than Ethereum in that they really emphasize having these big academic proofs for everything, whereas Ethereum tends to be more okay with heuristic arguments. In part because [Ethereum is] just trying to do more faster. But there are definitely very interesting things that come out of IOHK Research.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.