Is Cardano The Next Solana? Institutional Investors Clamor For ADA Exposure

Crypto asset investment products started the year on a positive note, with Cardano making a comeback despite going on a price decline last week. According to the latest digital asset fund flow from CoinShares, crypto products saw total inflows of $151 million in the first week of 2024.

Timeline of Cardano, Solana

Cardano (ADA) network, a top-rated layer one (L1) blockchain with about $350 million locked by its web3 protocols, is on the final stretch of invalidating the 2022/2023 bear market. Following the 70 percent December breakout, Cardano bulls have enjoyed the upper hand, bolstered by the ongoing altcoin recovery.

A closely followed crypto trader thinks that one Ethereum (ETH) challenger may be on the cusp of a breakout rally. Crypto trader Ali Martinez tells his 40,000 followers on the social media platform X that Solana (SOL) is forming a bullish continuation pattern on the hourly chart.

Cryptocurrency investment products offering investors exposure to the smart contract platform Cardano ($ADA) saw significant inflows of $3.7 million over the past week, but failed to keep up with the inflows seen for BTC, ETH, and multi-asset investment products.

A widely followed crypto strategist is updating his outlook on Ethereum (ETH) competitor Solana (SOL). Pseudonymous crypto strategist Pentoshi tells his 738,500 followers on the social media platform X that SOL could dip in the coming months by more than 40% from its current value.

Recent research indicates that Cardano boasts the most substantial developer activity among blockchains. Despite this, a noticeable gap exists between this vibrant activity and its decentralized finance ecosystem.

More big investors, known as whales, are getting active with Cardano (ADA), and this has led to people thinking that there might be a big upward trend, known as a bull run, coming for the digital currency. This could really boost the price of Cardano.

Solana's SOL price experienced a notable setback during the first week of the new year, sliding by 10% to under $100. This decline marked a significant retracement from its recent peak of $115 on January 2.

On January 4th, cryptocurrency analyst Ali Martinez reported that Cardano whales have acquired over 14 million ADA tokens in the last two weeks, valued at approximately $8.4 million at the current exchange rate.

During the initial week of 2024, the digital currency solana experienced a sharp decline, shedding over 6% in value. This downturn has relegated the crypto asset to the fifth position in market rank, as it oscillates beneath the $100 threshold on Saturday, Jan. 6, 2024.

According to the latest findings from CryptoDiffer, Cardano (ADA) has significantly outpaced Ethereum (ETH) in terms of average daily developer activity on GitHub over the past month. The data indicates that Cardano has surged ahead with a remarkable 245% lead over Ethereum in this crucial metric.