Widely followed cryptocurrency trader Capo has announced he is selling 75% of his Ethereum holdings for Cardano’s ADA, seemingly expecting the cryptocurrency to outperform the market in the near future.
Capo’s announcement came days after he revealed he was looking at several cryptocurrencies, including Binance’s BNB, smart contract competitor Solana, ADA, automated market maker Balancer, and oracle asset Tellor.
Sharing a chart of the ADA/ETH pair, Capo said he is expecting the coin to surge in the near future and outperform the second-largest crypto by market capitalization.
In a follow-up tweet, Capo added that he is also planning on selling some of his BNB holdings for Cardano’s ADA as it “looks very good.” Capo’s bet on the cryptocurrency, first reported by Daily Hodl, comes after cryptocurrency markets endured a significant correction.
The correction came after Tesla CEO Elon Musk announced Tesla would no longer accept bitcoin as a payment method over environmental concerns. Tesla had been accepting BTC payments since February when it invested $1.5 billion in bitcoin. In its announcement, the firm clarified it would not sell its BTC.Addressing bitcoin, Capo seemingly implied he believes the dip may represent one of the last opportunities traders have to buy the flagship cryptocurrency at these prices. The CEO of CryptoQuant, Ki Young Ju, seemingly has a similar sentiment, believing an ETF could help BTC’s price surge once approved.It’s worth noting ADA has already significantly outperformed most other cryptoassets over the last 12 months, as it’s up 3,500% over said period. In comparison, bitcoin’s price went up little over 440%.
Behind its surge were several technical improvements, including the upcoming implementation of smart contracts on Cardano with the launch of the Alonzo Phase. ADA is currently trading at $1.88, up from about $0.05 a year ago.