According to the CoinShares report, institutional investors are pouring money into Cardano as demand for the network rises due to its imminent releases and many solutions, placing the ecosystem in the same category as Ethereum.
The most intriguing aspect of the report is not the presence of increased inflows but the pace of institutional funds reallocation. Ethereum and Solana are extensively being drained as institutional faith in ADA grows.
Cardano enjoys surging institutional inflows. Image: coingape
In the next few months, at the present rate, the amount of ADA owned by institutions will surpass the Ethereum holdings. Recent Beacon chain concerns operational on the mainnet after the merge is the most likely reason for the outflow of cash from Ethereum.
Investors, particularly institutions that prefer stable investments over speculative ones, might face a significant security threat. The block rearrangement may lead to duplicating all transactions and activities on the main network.
The network saw exponential expansion when Cardano’s daily on-chain transactions rose by 368%. This soar is due to the launch of the first decentralised apps and solutions developed in the ecosystem.
The most significant and anticipated Cardano’s Vasil Hard Fork will bring numerous CIPs to life. The expected network updates will reduce transaction costs and processing time, making Cardano one of the industry’s cheapest and quickest networks.
Cardano is now trading at $0.5 and has lost around 1.6% of its value in the previous 24 hours.