Cardano Gains 11% on ETF Inflows, SecondFi Launches Migration Tool
Cardano (ADA) price climbed by 11% to $0.220, outperforming a broader market rally primarily driven by a massive wave of institutional capital into crypto ETFs and a macro-induced short squeeze.
A market-wide rally fueled by record ETF inflows and a Treasury buyback-induced short squeeze created a powerful beta tailwind for major altcoins like ADA.
The entire crypto market surged, with total market cap up 5.54% in 24h. The primary driver was a historic influx into U.S. spot Bitcoin ETFs, which saw a four-day inflow streak totalling approximately $1.61 billion, with a single-day intake of $606.29 million on August 20 – the largest since May 1.
This institutional demand was amplified by a violent short squeeze, triggered by the U.S. Treasury’s announcement to double its long-dated bond buyback program, which weakened the dollar and loosened financial conditions.
Cardano’s move was largely a beta play, riding a powerful wave of institutional capital and macro-driven liquidity flooding back into crypto.
While no coin-specific news catalyst was visible, Cardano’s ecosystem saw a significant uptick in utility. On-chain transactions almost doubled over 48 hours, with the blockchain processing over 32,000 transactions in a day following consecutive volume increases of 48% and 33%.
Technically, ADA broke above a rising parallel channel and is testing the key 200-day Simple Moving Average (SMA) near $0.22, with the RSI at 72.2 indicating strong bullish momentum.
The price surge was confirmed by genuine network usage and a technically sound breakout, moving beyond pure speculation. Sustained transaction volume above recent highs and a daily close above the 200-day average.
The immediate path hinges on two concrete factors: the broader ETF inflow trend and ADA’s ability to hold a critical technical level. If buying pressure continues and ADA sustains a move above the 200-day average of $0.22, the next Fibonacci extension target is $0.25.
However, the rally has been rapid, and the Fear & Greed Index has jumped to 73 (Greed), signalling potential overextension. A break below the $0.22 support could see a retest of the $0.205 level.
The bias is bullish but extended, requiring consolidation or continued institutional support to maintain momentum. A daily close below $0.22 as a sign of weakening momentum and potential profit-taking.
Cardano’s double-digit gain is a combination of catching a macro-driven market updraft and demonstrating improved on-chain fundamentals. The move is validated by volume but is now testing a major long-term trend indicator.
Cardano wallet service provider SecondFi tweeted that its wallet migration tool has gone live in the App. The tool is aimed at users who still hold Cardano assets, allowing them to transfer all Cardano balances (including $ADA, native tokens, and NFTs) from their current wallet to a newly created Cardano wallet address.
As SecondFi is shutting down, the team recommends that all users with balances perform the migration. If a user’s wallet is affected in the incident, they need to wait for the asset recovery tool, expected to go live in September; migration does not affect claims.
If $ADA is staked during the migration process, it will be automatically unstaked, and users need to re-delegate to a DRep in the new wallet. Non-Cardano assets need to be transferred separately.
