Cardano Attracts Influx of Liquidity in Hong Kong, Among Top Holdings

Despite Cardano’s regulatory challenges, it continues to attract massive liquidity from global markets, particularly Hong Kong.

Hong Kong floating on blockchain and cardano coins.
Created by Kornelija Poderskytė from DailyCoin
  • Cardano’s fate remains uncertain in the US. 
  • Despite its regulatory challenges, Cardano is attracting liquidity from different regions of the world. 
  • Hong Kong investors, in particular, remain very bullish on Cardano. 

Cardano continues to navigate regulatory challenges stemming from the US SEC’s classification of the asset as an unregistered security in its high-profile lawsuits involving major exchanges. 

Despite these challenges, Cardano holds firm and continues to shine as it attracts massive liquidity from global markets, particularly Hong Kong, where the project’s appeal remains strong. 

Cardano Welcomed in Other Regions

While Cardano’s fate in the US hangs by a thread, it has managed to attract substantial liquidity from Hong Kong investors, who remain bullish on the network’s long-term prospects.  

This was evident in the latest report from Hong Kong Virtual Asset Consortium’s (HKVAC) Crypto Index. Data revealed that Cardano held a notable position among top holdings in the index with a weight of 2.77%, placing ADA alongside renowned tokens like Bitcoin, Ethereum, USD Coin, Ripple, and Tether. 

Cardano HKVAC Crypto Index
HKVAC Crypto Index. Source: HKVAC.

While Bitcoin, Ethereum, and Tether each represented a 15% weight in the index due to their massive dominance and use, ADA’s weight did not fall short in underscoring its growing appeal beyond the dominance of these tokens, signifying its position as a prominent player in the industry. 

This inclusion in the HKVAC Crypto Index is a significant achievement for Cardano, as it recognizes the increasing adoption and demand for ADA. Although Cardano may not be welcomed in the US as leading exchanges delist the token, its vision continues to resonate with investors worldwide, who recognize its potential and actively contribute to expanding the ecosystem. 

On the Flipside

Why This Matters

Hong Kong Investors’ interest proves that the Cardano ecosystem is robust and will find liquidity in different parts of the world despite regulatory hurdles. 

FAQs

What is liquidity in crypto?

Liquidity refers to the availability of cryptocurrencies in a market.

Is high liquidity good or bad in crypto?

High liquidity in crypto markets is considered positive because it allows easier and faster trading, better market efficiency, and improved price stability.

Is cryptocurrency trading legal in Hong Kong?

Yes, Hong Kong recently updated its regulatory infrastructure to allow retail investors to trade major digital tokens like Bitcoin, Ethereum, Ripple, and Cardano at licensed exchanges.

Is China crypto-friendly?

China isn’t considered crypto-friendly because it outlawed all crypto transactions in 2021. However, recent news suggests the government may be opening up to the idea.

More on Cardano: 

Cardano Stablecoin DJED Volumes Spike Following Altcoin Rally

Read why the Bank of America is bullish on Avalanche (AVAX):

Bank of America Heralds Avalanche: “Future of Tokenization” 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.