SOPA images
- Inflows into ada-backed products hit a record $10.1 million in the week to August 27, according to CoinShares.
- Ether saw $17.2 million in inflows, while bitcoin experienced its 8th week of outflows.
- Cardano's upgrade is due September 12 and will expand its capacity.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Cardano's ada token saw record inflows last week, as investors geared up for the network's impending upgrade, pushing the price up 20%, according to a CoinShares report on Monday.
CoinShares said products backed by ada saw inflows of $10.1 million worth of inflows in the week ending August 27.
Earlier this month, cardano announced the "purple" upgrade that is part of its alonzo series of improvements, would take place on September 12. The network will then be able to handle smart contracts and other applications, much like the rival ethereum network.
"Clearly people are trying to diversify and people are taking a step further to look at other altcoins," CoinShares investment strategist James Butterfill said.
Ada has more than doubled in value in August, hitting a record of almost $3.00 ahead of a series of upgrades to the underlying cardano network. It's overtaken XRP and Binance coin as the third-largest cryptocurrency by market capitalization, behind bitcoin and ether. The token was last trading at around $2.8 up 1.7% over the last 24 hours, according to Coinbase.
"As smart contracts enabling blockchains, the duo of cardano and ethereum have the propensity to harbor countless innovative projects. These projects, in turn, will promote the utility of the native tokens for both blockchains, driving their valuations," Dmitry Mishunin, founder and CEO of HashEX, a smart contract audit company, told Insider.
Ether has gained around 30% this month, having hit a three-month high of almost $3,380, while bitcoin briefly topped $50,000 for the first time since May last week, but has since eased to around $47,400.
"Bitcoin only relies on its capped supply and the first-mover advantage, a trend many investors are beginning to substitute for unique technology that can drive a blockchain-dominated future," Mishunin said.
CoinShares' report showed other altcoins like XRP saw outflows of $300,000 and polkadot's dot saw inflows of $1.5 million.