Why Did The Crypto Market See A Major Gain In October, Particularly Cardano Price?
As we all know, the cryptocurrency market is more volatile than the conventional traditional market. This means that it is subjectable to changes superfast. This can be a good thing as it can be a bad thing. But in October 2021, the crypto market saw a major gain.
If you are familiar with the Cardano (ADA), you will know it significantly had a major struggle in September. It experienced a major drop of about 32%, which made its total market capitalization fall from about $90 billion to $66 billion.
Since Cardano is a very promising coin, it was able to bounce back to its position of glory by October. Read on to find out some of the factors to contribute to the crypto market gain in October, particularly Cardano price.
Broader institutional cryptocurrency adoption
The adoption of a cryptocurrency is a major factor that can affect its price. Several experts have predicted that bigger global corporations will adopt cryptocurrency. And by October, a significant number of them had already done so. This served more as a reaffirmation to many investors that cryptocurrency is not going anywhere. Fintech companies like Square and PayPal are allowing their users to buy on their platform with cryptocurrency. AMC is also another example that recently announced that it will be accepting cryptocurrency as a form of payment by the end of the year. Generally, this tremendous inflow of attention to the crypto industry has helped Cardano price rise.
Economic growth
Economic growth is another factor that can influence the crypto market. Irrespective of the type of crypto, if the economy is bad, it will negatively impact its price. This is because the demand for the coin will surpass the supply. But when the economy is on the rise, there will no doubt be more investors who want to buy in. October was a good month for the economy, which is why we saw a rise in crypto´s price. Although in October, the Cardano price was not at its all-time high, it surely was higher than the previous month.
COTI is now the official issuer of Djedstablecoin
Towards the end of September, Cardano’s founder announced COTI as its partner. And that COTI will be the official issuer of Djed. Djed is a new DeFi-focused stablecoin that will work on the Cardano network. This improvement contributed positively to Cardano’s price, as Djed will help avoid transaction fees. In other words, the algorithm will use smart contracts to ensure there is price stability. No doubt, one of the reasons some people haven’t invested in Cardano is because of the exorbitant gas fees. Now that the Djedstablecoin will help avoid the volatile and high gas fees, nothing is stopping such investors from joining the train. Now,Cardano can have a more predictable transaction fee, which is great when you are looking at investing huge amounts and don’t want to give away hundreds or thousands of dollars as gas fees.
Cryptocurrency regulations
Cryptocurrency regulations can either make or break a coin globally. When there are clearer regulations, it removes major roadblocks for cryptocurrency investors. China’s recent announcement in September that all cryptocurrency transactions in the country are now illegal has put a major setback to crypto-related activity in the country. But on the bright side, the setback in China means investors will be looking to invest in other, more crypto-friendly countries. Japan and other neighbouring countries are the major benefactors of this regulation in October, as they saw a major increase in crypto activity.
Crypto ETF approval
With more and more crypto being approved by ETF, there is no doubt that the crypto market is breaking new ground. This development represents a new and more conventional way people can invest in crypto. Come to think about it, this is a development investor have been expecting for too long. If the equity market and bond market are ETF approved, why not crypto? Unlike regular purchasing and saving it for years for its price to increase. With ETF approval of crypto, investors can directly purchase crypto from investment brokerages that they may already have accounts with.
To sum things up, it helps to be informed when you want to make an investment, especially in the crypto industry. If you are looking for a great coin to buy, Cardano is a great coin to consider. You should actually buy Cardano now that its price is still low and on the rise.
