Data from investment platform eToro has revealed an inclination for retail investors to flock to cryptocurrencies that deploy the proof-of-stake protocol.
Cardano’s ADA token was one of the notable assets that attracted investment, with it rising by 11% in June compared to the previous month.
The Cardano network is currently undergoing the highly-anticipated ‘Shelley’ upgrades and moved up to fourth last month as retail investors look to buy the real asset before it fully transitions from a centralised network to a distributed one.
It doesn’t come as a surprise that Bitcoin, which is the largest cryptocurrency by market cap, continues to be the most popular coin for retail investors on eToro in spite of a lack of volatility this month.
Bitcoin, the leading cryptoasset by both price and market capitalisation, continues to be the most popular coin for investors.
Investors are looking to hold onto their real crypto positions while prices consolidate across the sector. This is reflected in trading volume decreases across all cryptoassets in June, following the flurry of activity seen around the bitcoin halving in May.
Tezos, the 16th most popular cryptocurrency in 2019 on eToro, rose to fifth place in June. Decentralised application platform NEO and decentralised operating system TRON were also new entrants to the top 10 most invested cryptocurrencies. of June by eToro investors.
Simon Peters, market analyst and crypto expert at eToro, commented: “Bitcoin unsurprisingly retains its top spot as the most popular cryptoasset on the platform globally in June. Having undergone its third ever block reward halving in May, investors clearly remain interested in holding on to the cryptoasset, perhaps in preparation for an ensuing bull run, as has occurred following the previous two halvings.
“In altcoins, we are seeing a clear trend from investors towards blockchains that have proof of stake mechanisms. We’ve seen positive price performance of such coins, including ADA, which has risen from $0.0332 at the turn of the year to $0.1139 at the time of writing, constituting a 245% increase year to date. It would seem investment in many of these cryptoassets could prove to be well-judged for retail investors.”
“Recent months have seen investors look to cryptoassets such as bitcoin as long term investment opportunities, given widespread fiscal stimulus and performance that has dwarfed most traditional equity markets. We expect to see this trend gather steam as coins such as ADA and Ethereum, of which the latter is undergoing its own raft of technical improvements, join bitcoin as assets at the forefront of investors’ minds.”
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