Cardano to the Moon? 🚀 3 Reasons for ADA Optimism!

by

Right, so, Cardano (ADA), that plucky underdog of the crypto world, has been displaying a certain spring in its step lately. Between March 23 and March 25, it managed a rather jaunty 8% gain, cheekily poking at the $0.76 resistance level, a barrier that’s been stubbornly holding its ground for a fortnight or so. Now, I know what you’re thinking: a far cry from its March 3 high of $1.18, but traders, bless their optimistic souls, are still chirping about further gains. Seems founder and CEO Charles Hoskinson is busy charming industry leaders, particularly those chaps in traditional finance, with tales of ADA’s potential. Quite the persuasive fellow, what? 😉

The ADA price did a bit of a jig on March 3, all thanks to none other than US President Donald Trump, who, in a moment of crypto-induced clarity, explicitly mentioned Ether (ETH), XRP (XRP), and Cardano on his official social media accounts as top contenders for the US Digital Asset reserves. However, this being politics, the Digital Asset Stockpile executive order signed by Trump on March 7, rather disappointingly, didn’t include any plans to actually purchase these altcoins. Typical. 🤔

Trump Jr. and Charles Hoskinson will attend DC Blockchain Summit 2025

A fresh flurry of excitement for ADA erupted when Donald Trump Jr. was announced as a speaker at the DC Blockchain Summit 2025, a panel to be presided over by our very own Cardano mastermind, Charles Hoskinson.

The two-day shindig in Washington, D.C., will feature a host of rather important-sounding speakers, including Wyoming Governor Mark Gordon, Majority Whip Tom Emmer, Senator Ted Cruz, Senator Cynthia Lummis, and Bo Hines, Executive Director of the Presidential Council of Advisers for Digital Assets. One can only imagine the witty repartee. 🤣

Trump Jr., it seems, is scheduled to hold forth on March 26 alongside three co-founders of World Liberty Financial, a crypto venture backed by US President Donald Trump. Launched in September 2024, the company has already managed to rake in a cool $550 million through two public token sales. More recently, on March 24, they unveiled a dollar-pegged stablecoin on Ethereum and BNB Chain, though it hasn’t quite made its debut on the trading stage yet.

A good chunk of ADA’s recent bounce can likely be attributed to speculation about a potential hook-up with World Liberty Financial, not unlike the $30 million investment from Tron’s Justin Sun, or Web3Port platform’s $10 million punt. However, some naysayers, including 6MV managing partner Mike Dudas, have cast a rather jaundiced eye on Trump’s crypto endeavour, describing it as a “pay-to-play” scheme rather than a genuine decentralized finance (DeFi) gateway. The cheek of it! 🤨

The potential listing of World Liberty Financial’s USD1 stablecoin on Cardano could be a real game-changer for the blockchain, generating considerable buzz around Charles Hoskinson sharing the spotlight with their representatives. Furthermore, despite its relatively modest total value locked (TVL) and onchain activity, the Cardano network has been giving some of its rivals a run for their money during testing.

US digital stockpile and Cardano’s DeFi yield could boost demand for ADA

Improvements within Cardano’s DeFi ecosystem and the opportunity to snag some rather tempting yields could also give the ADA price a bit of a nudge. Hydra, a layer-2 scalability solution on Cardano, has managed to achieve nearly 1 million transactions per second while running a game. Some chaps have pointed out that no transactions have ever failed on the Cardano base layer, setting it apart from the likes of Solana, which boasts about scalability but has been known to suffer the odd hiccup. 🙄

Citing figures from Dune Analytics, TapTools reported a rather embarrassing 40% failure rate on Solana transactions in the 30 days leading up to March 17. In contrast, the post rather smugly claims that “every transaction is validated before hitting the chain” on Cardano’s “eUTXO model.” 

Despite this rather pointed critique, a fellow by the name of grekos99 argued on the X social network that most failed transactions on Solana are “typically transactions which are not fully executed because some conditions were not met, for example, slippage.” Well, there you have it. 🤷

Regardless of what one thinks of Cardano’s unique validation and scalability processes, some of its DeFi applications are showing promise. For example, Indigo, a non-custodial synthetic asset protocol on Cardano, is currently offering a rather generous 28% yield on its stablecoin and 20% on Bitcoin-wrapped deposits. However, it should be noted that part of the difference can be attributed to returns being paid in INDY tokens, making them somewhat less appealing compared to some of its competitors. Still, not to be sniffed at!

The path for ADA to clamber back above the $1 mark largely depends on the Cardano Foundation and Charles Hoskinson’s ability to steer the ship, supporting use cases that align with its scalability and decentralization goals. No pressure, then!

Other factors that could give ADA a leg up include potential developments in the US government’s Digital Asset stockpile and inflows into Cardano’s DeFi applications, which are currently offering higher yields than most competitors. One can only hope! 🙏

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of CryptoMoon.

Read More

2025-03-25 22:53