tl;dr
Cardano (ADA) is experiencing declining momentum amid a broader market downturn, shedding nearly 12% over the past month and currently hovering around $0.70. Recent on-chain data shows that whales offloaded over 100 million ADA tokens last week, contributing to increased selling pressure and uncerta...
Cardano (ADA) is experiencing declining momentum amid a broader market downturn. Over the past month, the crypto asset has shed nearly 12% and is currently hovering around $0.70. Recent on-chain data reveals that whales offloaded more than 100 million ADA tokens last week, which further contributed to increased selling pressure and uncertainty over the asset’s near-term performance.
Santiment’s latest data revealed a surge in positive sentiment for Cardano as it reached its highest level in over four months. According to the on-chain intelligence platform, social media users are posting more than 3.5 positive comments for every negative one, a ratio not seen since late October to early November 2024. The spike in optimism comes as the US Securities and Exchange Commission (SEC) classified ADA’s use case as “smart contracts for government services.” Historical data suggest that similar sentiment peaks have coincided with price movements. This renewed enthusiasm could indicate increased investor confidence and potential price volatility in the near future.
As Cardano navigates the volatile market, three key factors are driving its momentum. President Donald Trump announced on March 2 that ADA would be among the cryptocurrencies in the United States’ strategic crypto reserve. A March 6 executive order later clarified that altcoins would be included in the Digital Asset Stockpile (DAS) and overseen by the Treasury. Secondly, Cardano Foundation CEO Frederik Gregaard confirmed that the project is collaborating with NASA on blockchain-based data solutions. The partnership focuses on data provenance, track-and-trace mechanisms, and satellite data applications. NASA is leveraging Cardano’s advanced Merkle Patricia Tries (MPTs) to ensure efficient and verifiable data storage. Additionally, Cardano’s growth and adoption prospects could receive a major boost as institutional capital flows in, driven by exchange-traded fund (ETF) applications from Canary Capital and Grayscale. According to Polymarket, the odds have risen from 52% on February 24 to 67% at the time of writing.
Cardano (ADA) is experiencing declining momentum amid a broader market downturn. Recent data indicates a surge in positive sentiment potentially catalyzing a turnaround. Key factors driving Cardano include its inclusion in the US strategic crypto reserve, collaboration with NASA on blockchain-based data solutions, and prospects of institutional capital inflows driven by ETF applications.