- The possibility of a Cardano ETF being approved by the US Securities and Exchange Commission has shot up to 70% on PolyMarket.
- According to data from StakingRewards 307 million ADA, worth over $215 million were staked in April alone.
- Analyst Trade Byte believes that while the price of the cryptocurrency is currently down, the bigger picture “looks pretty interesting”.
The possibility of a Cardano ETF being approved by the US Securities and Exchange Commission (SEC) has shot up to 70%. This stands as a massive jump from just 20% earlier this year. Such a sudden jump in optimism shows that institutional interest is growing, and the string of positive developments around Cardano shows that the cryptocurrency could be in for a major breakout soon.
ETF Approval Odds Jump Amid Grayscale Repositioning
According to bets from Polymarket, the odds of an ADA ETF being approved by the end of the year have now shot up to 70%. The increase is in line with insights from analyst Karan Arora, who pointed out that Bloomberg Intelligence now has 75% odds of approval for Cardano, Avalanche and Polkadot ETFs. This shift came after Grayscale, one of the largest crypto asset managers in the world increased its $ADA holdings within its Digital Large Cap Fund (GDLC).
Whales added more than 180M ADA tokens in March, an indication of continued accumulation amid the market’s shaky status. April saw this figure balloon to nearly twice, at a 420 million ADA figure, or about $289 million in value. Moreover, wallets holding between 10 million and 100 million ADA now hold a combined total of nearly 12.89 billion ADA, which is up from 12.47 billion only a month ago. This type of large-scale accumulation shows that long-term conviction is becoming stronger, and a rally could be inbound.
Staking and DeFi Metrics Show Growing Network Strength
While ADA’s value has gone down lately, other indicators are solid. According to data from StakingRewards 307 million ADA, worth over $215 million were staked in April alone. This brings the total staking ratio to 60.65%. It also means that over $15.3 billion worth of ADA is now locked in staking contracts.
For comparison, Ethereum’s staking ratio is around 28%, and Tron’s sits at about 42%. A higher staking ratio generally shows that investors are confident in an asset, and are holding on to long-term mindsets. Cardano’s defi space is also expanding according to data from DefiLlama.
The network’s TVL recently rose to $394 million, on the back of platforms like Minswap, Liqwid, Indigo, and Splash Protocol. Average daily trading volume on DEXs is also above the $4 million mark, in a show of investor interest despite the price sluggishness of the cryptocurrency.
Cardano to $2?
At press time, ADA trades at about $0.69. This is slightly below the $0.74 resistance level, which has proven hard to break over the past five weeks. Market researchers are still hopeful about ADA in the long run, though. Trade Byte, for example, believes that while the price of the cryptocurrency is currently down, the bigger picture “looks pretty interesting”.
The analyst believes that the price of the cryptocurrency could double in this cycle, and could even hit $10 before the end of the decade. So far, if ADA falls below the $0.66 support level, it could risk a decline toward $0.60. This downturn may further dampen bullish momentum and push potential breakout attempts further out of reach.
