Cardano Bets on ADA’s Increased Liquidity to Attract Institutional Investors into the Market

Cardano Bets on ADA’s Increased Liquidity to Attract Institutional Investors into the Market

Wednesday, July 10, 2019, 1:31 AM

Cardano, a decentralized public blockchain and cryptocurrency project intends to attract institutional investors into the cryptocurrency market by increasing the liquidity and accessibility of its virtual asset, ADA. The company in June partnered with Algoz, a market maker solution service, as a step in the right direction in making ADA more attractive to institutional players.

Cardano’s Goal to Attract Institutional Investors into the Market

Cardano’s native coin, ADA, which was initially released in 2015 came with the promise of attracting major industry players into the crypto space. However, the project is still battling the same challenges that plague the crypto space.

Despite this, ADA is still one of the top cryptocurrencies by market cap and is currently warming the 11th position. The virtual asset has also made significant gains in the past month, a fact that can be attributed to its current price of $0.078. Comparing the $0.04 price as of January 1, 2019, there has been a 90.71% increment.

In just six months, the virtual asset’s market capitalization increased from $1.1 billion to over $2 billion. There’s also its daily trading volume that is worth remarking on since it has increased by 759%. It moved from $14.9 million to $128 million between January and July 2019.

Cardano and Algoz Partner to Increase Liquidity of ADA Tokens

Things may even look better thanks to the partnership between Cardano and Algoz last month in a bid to enable Cardano to take advantage of Algoz’s proprietary automated liquidity solutions. Reportedly, Algoz solutions can potentially increase the liquidity and accessibility of ADA tokens for cryptocurrency investors and traders.

Algoz is proud to be engaged by @CardanoStiftung for the provision of liquidity and trading solutions on the ADA token. The collaboration of Algoz with one of the most inspiring projects in the crypto scene is expected to increase the liquidity of the token and its accessibility. pic.twitter.com/9n3SOBrwsr

— Algoz – Liquidity Provider (@Algoz_io) June 25, 2019

There’s also the expectation that the partnership between the duo will not only help to improve the liquidity of ADA but make it more attractive to institutional investors. The latter is expected since ADA’s trades will have smaller spreads and be less susceptible to market manipulations by whales.

Use of Algoz Solutions to Reduce Errors in the ADA Market

Similarly, fewer errors will occur in the market which is mostly caused by inefficiencies. An instance of this is when a trader is forced to buy or sell ADA at a certain price since there is no liquidity on the order book that may correspond to the price or volume they want to trade. When this and many more are resolved, Cardano could potentially move into the big league.

Algoz, on the other hand, is a service that is currently employed by crypto projects, exchanges, and stakeholders in five different continents. The service was created by Fingenon Group in a bid to unleash the liquidity for cryptocurrencies. It makes this possible through the use of Fingenom’s trading strategies, world-class infrastructure, and algorithms.

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