Cardano's ADA Token Gains Traction, Rising Towards Record-Breaking Heights?
Cardano (ADA) has experienced an eight percent increase over the past month, as it continues to test the resistance level at $0.76, a barrier it has been unable to surpass since March. However, with a surge in investor interest, there is a possibility that the coin could see further gains in the near future, potentially reaching a new all-time high.
Cardano has just been ranked second in community support among cryptocurrencies on CoinMarketCap, following Bitcoin. According to data from TapTools, ADA received 4,844 community votes on the platform, with 87.0% of voters expressing optimism about the coin's future. Bitcoin received 87.3% optimism, based on 9,438 votes.
The attention of the crypto community is now focused on the U.S. Securities and Exchange Commission's decision regarding Grayscale's spot ADA ETF application, scheduled for May 29, 2025. Originally, the SEC had set April 14, 2025 as the deadline for this decision. However, a 45-day extension was announced in March, pushing the deadline back to May 29. This extension allows the SEC more time to thoroughly consider the application and address any concerns that may arise.
The crypto industry remains optimistic about the ETF's approval. On Polymarket, over 71% of users believe the ETF will be granted approval, while Bloomberg analyst Eric Balchunas anticipates a 75% chance of approval. If the SEC approves the ETF, it could pave the way for increased institutional investment and potentially push ADA's price above the $0.76 resistance level.
In addition to developments surrounding the ADA ETF, Cardano has seen a rise in on-chain activity. According to DeFiLlama, the total value locked (TVL) on Cardano's DeFi platforms currently stands at approximately $346.12 million,showing steady growth in decentralized finance applications on the network. The network supports 48 active DeFi apps, including platforms for lending, borrowing, and yield farming. Some projects on Cardano, such as Indigo, offer competitive yields, like 28% on stablecoins and 20% on Bitcoin-wrapped assets, although rewards are often paid in native tokens, which could impact investor interest.
Technically, the overall market for ADA is currently bullish. Although the price briefly crossed above the $0.76 resistance on May 25, it subsequently dropped back and began consolidating. However, on the 4-hour chart, a bullish flag pattern has formed, suggesting a potential rally may be imminent. The Relative Strength Index (RSI) on the daily timeframe is currently at 48, indicating that there is still room for the bull market to take control. However, the market remains uncertain, and the SEC's decision on the ADA ETF tomorrow will determine the direction it takes.
Sources:
- [1] CoinMarketCap: Cardano (ADA) Community Support Ranking. https://coinmarketcap.com/currencies/cardano/
- [2] TapTools: Cardano Community Support Ranking Twitter Post. https://twitter.com/TapTools/status/1524583215498919938
- [3] SEC: ADA ETF Extension Announcement. https://www.sec.gov/rules/slr/247/release/34-91723.htm
- [4] Polymarket: ADA ETF Prediction Market. https://polymarket.io/markets/virtual/adetf-approval-2025
- [5] Bloomberg: Balchunas' Crypto Outlook - ADA ETF Approval Chances. https://www.bloomberg.com/profile/article/video/63702656
- [6] DeFiLlama: Cardano TVL. https://defillama.com/protocol/Cardano
- [7] Indigo Finance: Rewards Details. https://www.indigofinance.io/rewards
- Despite the resistance at $0.76, the surge in investor interest towards Cardano (ADA) may propel it to reach a new all-time high.
- Cardano (ADA) has overtaken various cryptocurrencies to secure second place in terms of community support on CoinMarketCap.
- The SEC's decision on the Grayscale spot ADA ETF application, originally set for April 14, 2025, has been extended to May 29, 2025, providing additional time for thorough consideration.
- The crypto industry is eagerly anticipating the approval of the ADA ETF, with 71% of users on Polymarket and 75% according to Bloomberg analyst Eric Balchunas predicting its approval.
- The DeFi sector on Cardano is growing, as the total value locked (TVL) currently stands at approximately $346.12 million, with 48 active DeFi applications, including lending, borrowing, and yield farming platforms offering competitive yields on stablecoins and Bitcoin-wrapped assets.
