Cardano (ADA) is gaining significant traction in the cryptocurrency market, with the odds of a U.S. spot ETF approval reaching 75%, according to recent market analyses. This surge in confidence follows Grayscale Investments’ filing for the first-ever spot ADA exchange-traded fund (ETF) in the United States, a move that has ignited investor optimism and propelled ADA’s price upward.
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Grayscale’s ETF Filing Sparks Market Enthusiasm
On February 10, 2025, Grayscale submitted an application to the U.S. Securities and Exchange Commission (SEC) to list a spot ADA ETF on the New York Stock Exchange. The SEC acknowledged the filing on February 24, initiating a 240-day review period, with a decision anticipated by October 2025 .
The market responded swiftly to this development. ADA’s price surged over 11% following the announcement, outperforming major cryptocurrencies like Bitcoin and Ethereum . Trading volumes also spiked, with a 99.5% increase amounting to over $1.1 billion, indicating heightened investor interest .
Institutional Adoption and Government Recognition
Further bolstering ADA’s prospects is its inclusion in the U.S. Crypto Strategic Reserve, alongside Bitcoin, Ethereum, XRP, and Solana. This move by the U.S. government underscores Cardano’s growing credibility and strategic importance in the digital asset landscape .
Additionally, Cardano’s ecosystem is witnessing significant growth in decentralized finance (DeFi) and real-world applications. The Total Value Locked (TVL) in Cardano’s DeFi sector increased by 13% in Q4 2024, reaching approximately $231 million. Platforms like Liqwid Finance and Minswap DEX have been instrumental in this expansion .
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Price Trajectory: Is $1 Within Reach?
Analysts are optimistic about ADA’s price trajectory. Following the ETF filing, ADA experienced a 16% price increase, reaching $0.80. Experts suggest that ADA could test the $1 mark in the near term, with some projections estimating a potential rise to $1.50 by May 2025
Long-term forecasts are even more bullish. Some analysts predict that ADA could reach $3 with increased institutional adoption post-ETF approval . Others envision ADA soaring to $7 in the next bull market, contingent on broader market dynamics and adoption rates
Conclusion
Cardano’s recent developments, including the potential ETF approval and its inclusion in the U.S. Crypto Strategic Reserve, signal a transformative phase for the cryptocurrency. With growing institutional interest and expanding real-world applications, ADA is poised for significant growth, and the path to $1 appears increasingly attainable
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