Cardano’s (ADA) value has dropped by 12% in the last week. Today, the price fell 2.6%. ADA still maintains the position of 9th biggest cryptocurrency with a total market capitalization worth $20.27 billion.
This latest downturn is part of a broader crypto-market that’s mostly experiencing sideways and downward movements. ADA has suffered more than other peers such as ETH (down 7.4%), BNB (6.4%), Solana (6.3%) or XRP (6.1%).
Grayscale Dumps Cardano From GDLC
The recent sale of ADA by the Grayscale Digital Large Cap Fund (GDLC). Cardano accounted for 1.62%, or $9.4million, of the fund’s portfolio, with assets under management worth $579million.
Grayscale Investments made the announcement on Thursday as part of their first quarter review for 2024. Officially, according to press releaseGDLC adjusted its portfolio by selling Cardano. Cash proceeds were then reallocated to Fund Components proportionally to their weights.
The rebalancing resulted in the removal of ADA’s from GDLC’s portfolio. Final composition as at April 3, 2024 includes Bitcoin 70.96%, Ethereum (21.84%), Solana (4.52%), XRP (1.73%) and Avalanche (0.96%).
This press release is detailed. “In accordance with the CoinDesk Large Cap Select Index methodology, Grayscale has adjusted GDLC’s portfolio by selling Cardano (ADA), and using the cash proceeds to purchase existing Fund Components in proportion to their respective weightings. As a result of the rebalancing, Cardano (ADA) has been removed from GDLC.”
Grayscale has also presented the quarterly evaluations for the GDLC Fund Components and the DEFG Fund Components. These are aimed to update existing Fund Components as well as include new components based upon index methodology provided by Index Provider. Using this method, the fund’s holdings are updated to reflect current asset and market performance.
Cardano still exists in the Grayscale Smart Contract Platform Ex-Ethereum Fund. This cryptocurrency has the second highest position, after Bitcoin. Solana The weighting is 14.56%.
Charles Hoskinson (founder of Cardano) responded with a terse statement via X. “Wall Street give; Wall Street take.”
This short comment encapsulates both the volatility and impact of major crypto currencies. financial Grayscale is one of the players that can influence digital asset market dynamics.
Wall Street give; Wall Street take https://t.co/dkyrhHW4WS
— Charles Hoskinson (@IOHK_Charles) April 5, 2024
ADA traded at $0.57 as of the time of publication. In order for ADA to build new bullish momentum, it must first overcome the $0.58 100-day EMA. Since mid-January, the 100-day EMA served as a strong support on three occasions. ADA has been struggling to regain this indicator after the recent dip. The bulls will need to move above $0.68 in the short term.
Chart from TradingView.com, image courtesy of Guarda Wallet
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Source: www.newsbtc.com
