Cardano’s ADA Surges 5.2% Following Cardinal Protocol Announcement
Cardano (https://holder.io/coins/ada/) experienced a 5.2% price increase with a 40% surge in 24-hour trading volume on June 10. This growth followed the launch of the Cardinal Protocol by founder Charles Hoskinson, marking the first Bitcoin DeFi protocol on the Cardano blockchain.
Key points about the Cardinal Protocol:
- Allows users to wrap Bitcoin UTXOs into DeFi-compatible assets for lending, staking, and borrowing.
- Features a Wrapped UTXO primitive that creates 1:1 pegged assets for on-chain movement or burning to release Bitcoin (https://holder.io/coins/btc/).
- Utilizes Cardano’s eUTXO model and a secure multisig setup (MuSig2) for locking Bitcoin, minimizing custodial risks.
- Trust-minimized, enabling cross-chain functionality with Ethereum (https://holder.io/coins/eth/), Solana (https://holder.io/coins/sol/), and Avalanche (https://holder.io/coins/avax/).
- Assets remain secure with fraud-proof peg-in/peg-out processes.
- Integrates BitVMX for verifiable off-chain logic and supports various DeFi applications.
- First Bitcoin Ordinal has been successfully wrapped/unwrapped; improvements are underway for a production-ready version.
As of now, ADA is trading at approximately $0.698 with a market cap of $24.62 billion. The Relative Strength Index (RSI) indicates weak momentum but potential for upside if bullish strength increases. The price is near the midline of the Bollinger Bands, suggesting a possible reversal, with resistance at $0.77.
Analysts predict ADA could see significant movement if it closes above this resistance, potentially leading to a return to $1, a level last observed in March.