Cardano Breaks Correlation with Bitcoin Price with Recent Partnership with Coinbase and Shelley Mainnet Launch

Sarah Tran   Jul 03, 2020 18:00

Cardano recently partnered with Coinbase Custody to allow ADA holders to stake and store their funds in a secure cold wallet. The launch is expected in Q4 of 2020, once the staking rewards on Cardano’s Shelley mainnet becomes available.

Cardano ADA price Bitcoin correlation Coinbase Custody Blockchain.News.jpg

The Shelley mainnet launch was the biggest upgrade to the Cardano blockchain so far, with the deployment of the Shelley code confirmed to have been successfully released on the mainnet on June 30.

Participants on the Cardano network will be able to interact with the Shelley mainnet from July 7. Holders of the Cardano cryptocurrency, ADA can transfer their funds to the upgraded Shelley wallet for staking rewards on the mainnet. 

The new custody agreement will allow IOHK, the blockchain engineering company behind Cardano, to be able to provide institutional-grade storage solutions to the Cardano community while allowing users to participate in the network. 

Cardano’s cryptocurrency ADA could potentially be listed by Coinbase in 2020. In a Coinbase blog dated in July 2018, five new cryptocurrencies were being considered, including Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX). Five of the mentioned cryptocurrencies have been listed, except ADA.

Ethereum killer and Bitcoin breaker

As of press time, Cardano ADA price has topped $0.101, with no bearish signs ahead. Cardano price has seen a 400% surge in the past four months, accompanied by a huge increase in price volume, which could be linked to the Cardano Shelley launch recently. 

Cardano has climbed 20% since the launch of the Shelley mainnet. The recent bullish announcements have set ADA swinging high, breaking the correlation in price with Bitcoin. Cardano could continue its rally while Bitcoin price has been flirting with its support level. 

Data from analytics firm IntoTheBlock showed that ADA price was highly correlated to Bitcoin price between January and mid-May, and has since broken that correlation in mid-May and has reached its yearly lows this week.

The Shelley hard fork, a remaining step towards full decentralization on the Cardano blockchain is expected on July 29, which marks another significant milestone for IOHK.

IOHK recently announced that it is launching a technology ecosystem fund—cFund, with Wave Financial Group, with investments made globally with a typical size of $250,000-$500,000. In partnership with the crypto asset management fund Wave, the fund will total in $20 million, which will provide money for companies and projects in the Cardano ecosystem. IOHK will be committing to half of the fund, $10 million, while Wave will be raising the other half.


Image source: Shutterstock

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