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Chance of a price crash increases as Cardano (ADA) futures near $1B

Published 05/14/2021, 04:00 PM
Updated 05/14/2021, 05:40 PM
Chance of a price crash increases as Cardano (ADA) futures near $1B

The impressive 816% gain of Cardano's ADA coin in 2021 catapulted the smart contract platform's market capitalization to $61 billion. To fully grasp how far this third-generation protocol has gone, the absolute leader, Ether (ETH), held the same valuation just six months ago.

As AD's price evolves, so do its derivatives markets, and the nearly $1 billion in futures open interest poses both an opportunity and a threat for the price. Cautious investors will now question whether the $200 billion in potential liquidations are around the corner, drawing similarities to the 23% crash that occurred on April 17.

ADA aggregate futures open interest. Source: Bybt
ADA perpetual futures 8-hour funding rate. Source: Bybt

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Latest comments

Crash will not come when anticipated
increases as ETH
ADA will crash 23-29% in immediate research call. Plan strategy accordingly.
go save you ETH somewhere else
ADA will end 2021 near $10 so any dip will be a perfect opportunity to buy more and just sit and wait my gorgeous profit.
Im confused, why ADA futures $1B, ? $200B liquidation? whereby the current is now $65B, is the writer drunk ?
Who cares... we will but more if/when it dips!
Damn right!
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