Cardano(ADA) Futures near a billion dollars

Cardano’s ADA coin has seen an impressive 816% gain that has catapulted the smart contract platform’s market capitalization to $61 billion. Why is it so impressive? Ether (The market leader of smart contracts) had the same valuation just 6 months ago.

As the coin’s price grows, so do its derivatives markets. However, this is not the first time the futures open interest reached $1 billion. Unfortunately, it couldn’t cross the threshold and had a substantial 23% crash on April 17.

ADA aggregate futures open interest. Source: Bybt

The $195-million long contracts liquidation was partly responsible for ADA’s crash that lasted for four hours.

This is why cautious investors are questioning whether the potential liquidations (about $200 billion) are around the corner or not.

Cardano uses a proof-of-stake mechanism, unlike Ethereum. While it still lacks features like native token issuance that’ll be added in the ‘Gougen’ update, it catches up to the market leader with a tremendous pace.

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