The cryptocurrency market started the year with remarkable momentum, witnessing a surge in market capitalization exceeding $150 billion within the past 24 hours. Among the top digital assets, Cardano’s ADA was a standout performer, rising over 11%.
This surge is a continuation of an earlier momentum for ADA, which started the year at around $0.846 before seeing a significant surge to now stand at $0.966. Its market capitalization has surged to $33.93 billion, solidifying its position as the ninth-largest cryptocurrency by market cap.
The cryptocurrency’s recent price rise came amid a wider bullish trend in the cryptocurrency space and, according to CoinGlass data, after more than a week of significant consecutive outflows from cryptocurrency exchanges, including a $12.5 million outflow on the first day of the year.
Significant outflows from exchanges suggest that supply available on the market is dropping, which, coupled with steady or rising demand, could lead to a price rise. It’s worth noting that CoinGlass data shows exchanges saw a $14.7 million inflow on Jan 2.
Today’s significant surge in the cryptocurrency market can largely be attributed to the anticipated establishment of a more favorable regulatory environment under President-elect Donald Trump. Policy shifts, such as the potential creation of a strategic Bitcoin reserve and the appointment of Paul Atkins as head of the SEC, have instilled confidence among investors.
Cardano may also be outperforming over its upcoming Plomin hard fork, a major upgrade set to occur at epoch 529, with the earliest possible enactment date for it being on Jan. 4.
The hard fork builds upon the foundation laid out by the Chang 1 hard fork back in September and will empower ADA token holders to directly participate in the future of the protocol through its governance system.
By delegating their voting power to Delegated Representatives (DReps) or assuming the role of DReps, ADA token holders will be able to vote on-chain. Beyond governance, the recent upgrade ahead of the hard fork introduces various technical enhancements, including new Plutus primitives for improved smart contract functionality, as well as better support for Stake Pool Operators.
Featured image via Unsplash.
