The Cardano reserves on Coinbase have surged 462% since the exchange launched wrapped ADA on base. This follows earlier reports that the XRP supply on the crypto exchange has fallen drastically, indicating significant investor demand.
Cardano Reserves on Coinbase Rise 462% Since Launch
Coinbase’s proof of reserves shows that there is a total supply of 9.56 million ADA for its reserve, which is used to back the wrapped ADA on the Base network. There is currently a total supply of 9.53 million cbADA on the Base network. This represents a 462% increase from when the crypto exchange launched the wrapped token with a supply of 1.7 million in June.
This highlights the significant demand for Cardano as investors use the wrapped token for DeFi activities on the Ethereum network. A community member, Mintern, with ties to the Cardano DEX Minswap, also noted how the ADA reserves on Coinbase have more than doubled in just the last month, indicating a sustained momentum. Mintern also questioned if this meant that institutional confidence was about to explode.
Notably, this comes ahead of the potential launch of the Grayscale Cardano ETF, which is expected to increase the demand for ADA as institutional investors look to gain exposure. The launch of this fund could happen this month, considering that the final deadline under the 19b-4 standard was this month.
Meanwhile, Hashdex has also included Cardano in its crypto index fund, a move that could also spark increased demand for ADA. The Cardano reserves on Coinbase could further increase in the coming months, considering that the exchange’s custody arm is the custodian for Grayscale’s ADA fund. Its reserve will include ADA tokens held on behalf of the Trust.
XRP Supply On Coinbase Drops
The increase in Cardano reserves on Coinbase coincides with a drop in the XRP supply on Coinbase. Crypto expert Del had revealed that over the last 90 days, the supply of XRP on Coinbase fell from 970 million to 99 million. Based on this, he declared that market participants are not ready for what comes next.
This also comes just ahead of the launch of the XRP ETFs, which could boost the altcoin’s demand. The current demand for ADA and XRP highlights the possible rotation from BTC and ETH to altcoins that are set to have their own spot crypto ETF.
Bitcoinist reported how institutions dumped BTC and ETH last week while XRP and SOL witnessed significant inflows from these investors. The launch of these ETFs is expected to serve as a catalyst for higher prices for these altcoins.
At the time of writing, the Cardano price is trading at around $0.85, up in the last 24 hours, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
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