Cardano, the eighth-largest cryptocurrency by market capitalisation, surged 10.07% in the last 24 hours, reaching approximately £0.38 per token. The move outpaced gains in Bitcoin and Ethereum, which rose 3.2% and 4.5% respectively over the same period, according to data from CoinGecko.
The rally lifted Cardano's market cap to around £13.5 billion, as trading volumes more than doubled to £1.2 billion. The broader crypto market added nearly 3%, with the total market capitalisation climbing above £1.1 trillion for the first time in two weeks.
Market commentators pointed to a technical breakout from a consolidation range that had held Cardano below £0.35 for much of the past month. 'Cardano has broken through resistance with strong volume, suggesting momentum could continue in the near term,' said a crypto analyst at London-based Digital Capital Management. 'The network's ongoing development work on scalability and smart contracts is also drawing attention from institutional investors.'
For UK investors and pension holders with exposure to digital assets, the move underscores the volatility inherent in cryptocurrencies. While Cardano's gains are eye-catching, the asset remains more than 80% below its all-time high of £2.47 reached in September 2021. Financial advisers caution that crypto holdings should form only a small part of a diversified portfolio, given the high risk of sharp reversals.
The rally also comes amid a broader risk-on mood in global markets, with the FTSE 100 rising 0.6% on the day. However, the UK's Financial Conduct Authority continues to warn that most crypto assets are unregulated and that investors should be prepared to lose all their money.