How Coinbase’s new moves will affect ADA
- Coinbase has announced perp trading for Cardano.
- The price of ADA fell, alongside Cardano’s development activity and social sentiment.
Coinbase, one of the largest exchanges in the world, has been through a lot of uncertainty recently, due to regulatory scrutiny. Despite this, the exchange continued to make progress and post updates.
More perps, more problems?
Recently, Coinbase announced that it will add support for Cardano [ADA], Chainlink [LINK], Dogecoin [DOGE], and Stellar’s [XLM] perpetual futures contracts on Coinbase International Exchange and Coinbase Advanced.
@CoinbaseIntExch will add support for Cardano, Chainlink, Dogecoin, & Stellar perpetual future contracts on Coinbase International Exchange & Coinbase Advanced. The opening of our ADA-PERP, LINK-PERP, DOGE-PERP, and XLM-PERP markets will begin on or after 10am UTC on 30 NOV 23. pic.twitter.com/BKJcbdps15
— Coinbase International Exchange 🛡️ (@CoinbaseIntExch) November 26, 2023
This could impact liquidity around Cardano positively. At press time, ADA was trading at $0.3808 and its price had fallen by -3.1% in the last 24 hours. The volume with which it was trading had also fallen.
Not so social
On the social front, the Social Volume and overall Weighted Sentiment around ADA had fallen. This showed that ADA’s popularity was slowly waning and that negative comments around ADA were on the rise.
Additionally, the Development Activity around ADA fell as well. This implied that developers were not as active while working on the Cardano network. This slowed momentum could affect the Cardano ecosystem in the long run.
The MVRV ratio of ADA also fell massively, implying that there were not a lot of profitable addresses holding ADA at press time. That meant that these addresses had less of an incentive to sell their holdings, which could reduce selling pressure on the token.
With the help of AI
However, things could improve for Cardano going forward.
Realistic or not, here’s ADA’s market cap in BTC’s terms
Girolamo, Cardano’s AI chatbot, could help uplift the platform. The chatbot, created with an aim to merge artificial intelligence and blockchain, helps create content and pictures and understands images.
#CardanoGPT has introduced #Girolamo, an AI-powered chatbot currently in its beta phase, which showcases Cardano's ongoing commitment to merging artificial intelligence with blockchain technology. Named after the renowned Italian mathematician #Girolamo #Cardano, the chatbot is… pic.twitter.com/zaRaabxAun
— Kevin Le (@trongducle975) November 26, 2023
The introduction of Girolamo is a huge move for Cardano’s future, and could potentially impact the entire crypto ecosystem as well.