Grayscale filed for a ADA spot ETF this past week, which led to a slight increase in Cardano’s price. The layer-1 coin, which is very popular with investors, jumped from $0.788 to a new high on Thursday morning. This was a jump of over 53% compared to its previous low. Over 150% more since 2024.
Cardano ETF hopes
The main driver of the ADA was Grayscale’s decision to file for a spot ADA ETFThis move could lead to more filings in the days ahead. Rex Osprey Bitwise Franklin Templeton and other firms are more likely to submit applications.
It makes sense to file an ADA ETF because it’s one of the largest cryptocurrencies, with a total market capitalization of more than $25 billion.
Cardano coin is a popular one. Over one million cardholders Some people see it as an alternative to Ethereum.
A ADA ETF could lead to increased institutional demand on Wall Street, and hype. This would in turn lead to higher price in the months to come.
But there are a couple of risks you need to be aware. Wall Street has shown in recent years that it is primarily interested in spot Bitcoin ETFs Ethereum funds are not popular among many financial institutions. Inflows into Spot BTC-based ETFs totaled over $40 billion, whereas Ether funds received only about $3 billion.
Ethereum ETFs are not generating staking returns, currently at around 3%. Investors prefer to invest in Ether and get the return of 3%. The Schwab US Equity Dividend ETF (SCHD), a popular fund, offers a 3.5% rate of return.
It is possible to use the same argument in different ways Since Cardano, ADA ETF is made from a specific spot. The yield is about 2%. Even so, the SEC could allow ETF of proof-of stake networks to earn staking reward. In an Invezz note, CoreFin analyst:
“A spot Cardano ETF will generate hype and possibly push its price higher. But, as we have seen with Ethereum, inflows to the fund may be limited unless Cardano becomes a more useful network like Solana. As it exists today, Cardano is a ghost chain with no major developments going on.”
Click here to read more Is a Cardano ETF next after Ethereum ETF’s strong start?
Charles Hoskinson VIP meet-up
Charles Hoskinson’s promise of a VIP-only meeting has boosted the ADA price. On March 1, this meeting will take place. It is speculated that Elon Sacks and David Sacks may attend.
Hoskinson’s failure to always deliver on his promises is a risk. Cardano for instance, has reached an agreement with Ethiopia to transfer its education system on to blockchain. After four years, there has been no progress.
Hoskinson recently said that he will meet Chainlink, which is the largest oracle of the industry. The meeting did not bring about major changes.
Elon Musk: A Meeting Cardano’s selection as a blockchain solution for the US Government would support the idea that Musk would choose Cardano. Musk hopes the blockchain will help reduce government expenditures.
Cardano’s ecosystem is also a major concern, as it is mostly a “ghost chain” with few applications. This is a smaller network than others like Aptos Mantle or Cronos.
Cardano price forecast
ADA Price chart by TradingView
Weekly chart indicates that ADA has stabilised in recent days. It reached a peak of $0.788, which is a few cents above the average 50-week price and the main resistance at $0.80. Last March, this was the largest swing.
Cardano entered the Elliot Wave’s second phase. This is a normal corrective phase. The third bullish phase will follow, which is often the longest.
If that happens, ADA’s price will probably have a breakout bullish and reach $1.679. This is the 50% retracement, which is 112% higher than the current level. The bullish outlook will be invalidated if the price drops below $0.52, last week’s lowest level.
Post Cardano price prediction: ADA may double, but risks remain The first time that appeared on Invezz
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: invezz.com
