Traders in Japan appear to be warming up to Cardano amid a rise in ADA trading, as they recently pushed the ADA/JPY pair to the second rank in global trading volume.
Cardano’s ADA token saw a strong uptick in price over the past week, climbing from around $0.72 to above $0.83 by May 23. While this 15% weekly gain drew attention across markets, trading data revealed a more unexpected development: a significant surge in the ADA/JPY trading volume.
This pair, long overshadowed by ADA/USDT, rose sharply to become the second highest globally among ADA pairs in 24-hour volume. Trading activity for the ADA/JPY pair reached $121.5 million, accounting for 10.7% of all ADA trading and surpassing even ADA/USDT, which posted $114.6 million in volume at 10.1% share.
Trading Volume Shifts Toward Yen
However, data shows the pair has lower liquidity when compared to the USDT pairs. This means there is $63,206 worth of demand (bids) and $100,684 worth of supply (asks) within a 2% price band around the current ADA/JPY price.
In contrast, ADA/USDT pairs reported deeper order books, with the top most exceeding $1.6 million on either side. These differences in liquidity suggest that while interest from Japanese markets is high, trading conditions remain thinner and potentially more volatile.
Price discrepancies also emerged during the period. ADA traded slightly higher against the yen, with the ADA/JPY rate at $0.8033, compared to the ADA/USDT range of $0.8017 to $0.8027.
Spreads for the yen pair also widened slightly to 0.02%, while USDT pairs maintained a tighter 0.01% spread. Despite the higher volume, these indicators pointed to more fragile market depth in the yen-based pair.
Historical Ties and Recent Developments in Japan
The latest trading activity follows a broader trend of reengagement between Cardano and Japan. Cardano’s founder, Charles Hoskinson, visited a prominent Japanese lawmaker earlier this year, amid discussions of regulatory changes in the country.
These included proposals to lower crypto taxes and revise digital asset classifications. The visit came as Japan worked to improve its crypto environment, potentially influencing investor confidence.
Japan’s connection to Cardano dates back to its origins. According to history, Cardano was conceptualized in Osaka in 2015, and its initial token sale from 2015 to 2017 drew over 90% participation from Japanese investors. Cardano even hosted a launch event in Tokyo, reinforcing its early ties to the region.
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