Cardano (ADA) Sees Strongest Inflows: Why and Whats Next?

Cardano (ADA) has seen a 10% increase in futures open interest to $554 million since being included in a proposed US Strategic Crypto Reserve. ADA's price has been volatile, ranging from $0.7693 to $0.9816 in the past day, with a 600% spike in hourly volatility. This high volatility is attributed to speculative interest and ADA's relatively low liquidity compared to Bitcoin and Solana. ADA's open interest has seen the largest percentage increase among the proposed reserve assets. An index tracking assets likely to be affected by government policy, the EAGLE index, has increased by 30% since the announcement and 226% since the beginning of 2023, outperforming Bitcoin by over 50%. Trading in the top 10 altcoins has become more concentrated, now representing 77% of US exchange volume and 66% of offshore exchange volume, up from 58% and 50% respectively a year ago. Cardano has had a positive 10% price change year-to-date, compared to negative returns for Solana (-20%), XRP (-19%), BNB (-10%), and DOGE (-42%). Cardano's futures open interest has also remained relatively stable during recent market downturns.