Cardano [ADA] is gearing up for a substantial release of ADA tokens into the market, timed with the seventh anniversary of its uninterrupted network operation.
With the announcement of this development, ADA has displayed indications of a potential rebound following a significant downturn in the previous quarter.
Cardano’s Plan to Release More than 18 Million ADA Tokens
As per Token Unlocks, Cardano is set to unlock 18.53 million ADA tokens on October 2nd, which accounts for 0.5% of the total ADA supply. The estimated value of this release is approximately $7.37 million.
This unlock coincides with Cardano commemorating seven years of continuous network operation and nearing the significant milestone of 100 million transactions processed.
Recently, Cardano executed a hard fork to bolster its expanding ecosystem, specifically to facilitate Decentralized Autonomous Organizations (DAOs).
The unlocked tokens are earmarked for staking, treasury, and funding reserves. This move follows a similar unlocking of ADA tokens in September when another 0.5% of the supply was introduced.
Cardano’s Recent Performance in the Market
Cardano concluded the last quarter on a downward trend, with CryptoCrypto reporting a 6% decrease in ADA’s value, sliding from $0.39 to $0.37. Nonetheless, even with this decline, the asset upheld its positive trajectory, staying above its short-term moving average at approximately $0.35.
At present, ADA has seen a 3% surge, now valued at around $0.38.
Furthermore, technical analysis highlights a turnaround in the Relative Strength Index (RSI), signaling a shift towards an upward trend.
ADA Slips in Market Capitalization Rankings
Currently, Cardano’s market capitalization is at $13.4 billion post its recent price drop. This decline led to ADA slipping from the 10th to the 11th spot in the list of cryptocurrency market capitalizations, with Tron moving ahead of it.
How the forthcoming token unlocks will impact ADA’s market cap and ranking remains to be observed.
As Cardano readies itself for the release of more than 18 million ADA tokens, market participants are closely monitoring the implications of this move.
While ADA displays signs of recovery, the token unlock and the prevailing market volatility could significantly influence its performance in the weeks ahead.