Polkadot vs. Cardano: Which Altcoin Will Lead the Next Bull Run?

• Polkadot’s derivatives market sees an 87% surge in trading volume, reflecting growing trader activity and bullish sentiment.
• Cardano records $27.7B in whale transactions, highlighting increased institutional interest and potential for a breakout.
• Polkadot and Cardano show bullish momentum, with rising RSI and MACD indicators signaling potential upward price movement.

Polkadot (DOT) and Cardano (ADA) are seeing surges in market activity, driven by growing investor interest and bullish sentiment.

Polkadot’s price is $4.08, with a 24-hour trading volume of $271.1 million. Cardano, meanwhile, is priced at $0.358, boasting a 24-hour trading volume of $603 million. Both blockchains are vying for dominance in the crypto space.

Polkadot’s Market Performance

Polkadot (DOT) rose 4.74% in the last 24 hours, with a market cap of $6.19 billion. Its circulating supply is over 1.51 billion DOT coins. And, Polkadot derivatives are on the rise, with trading volume surging 87.12% to $321 million. Open interest has also climbed 8.15% to $253 million, signaling increased trader activity.

Read also: Polkadot (DOT) Eyes Breakout in 2025, Outperforming ETH, SOL, and ADA

On key exchanges like Binance and OKX there’s a strong long bias, with long/short ratios above 3.8. This indicates bullish sentiment. But the market’s volatility remains high, as 24-hour liquidations reached $295,000. Despite this bullish momentum, Polkadot traders face heightened risks, particularly as leveraged positions increase.

On-Chain Activity and Ecosystem Development

Polkadot’s on-chain activity peaked at $4 billion in December 2023, driven by parachain auctions and DeFi growth. But by February 2024, monthly transaction values fell below $1 billion.

Despite this decline, Polkadot maintains its relevance through DeFi tokens like GLMR and AUSD. The network’s ecosystem could rebound with the introduction of new incentives and updates. These could potentially reignite user engagement and transaction volumes.

Cardano’s Strong Momentum

Cardano (ADA) has seen a 7.03% price increase in the last 24 hours, pushing its market cap to $12.55 billion. It has a circulating supply of 35 billion ADA coins. Cardano derivatives are also surging, with trading volume up 95.41% to $557.6 million. Additionally, open interest increased by 9.79% to $243 million.

Major exchanges like Binance and OKX report long/short ratios exceeding 2.9, reflecting strong bullish sentiment. Despite this optimism, ADA traders face significant volatility, as 24-hour liquidations totaled $1.13 million. Shorts accounted for $656,000 of these losses, highlighting the risks in a highly active derivatives market.

Whale Activity and Market Trends

Cardano has seen heightened whale activity, with $27.7 billion in large transactions over the past week. This suggests increasing interest from institutional investors. Additionally, Cardano shows a low 0.11 correlation with Bitcoin, meaning its price movements are relatively independent of the broader market.

With 73% of ADA holders maintaining their positions for over a year, long-term investor confidence remains high. These factors could position Cardano for a potential breakout in the coming months.

Technical Analysis: Comparing Indicators

Polkadot’s Relative Strength Index (RSI) is 49.80, indicating neutral momentum. However, an upward move past 50 could signal bullish continuation. The MACD also shows signs of reversing from bearish to bullish momentum.

Meanwhile, Cardano’s RSI has entered bullish territory at 54.47, signaling increasing buying pressure. Similarly, the MACD is hovering around the zero line, indicating a potential shift toward bullish momentum.