Why Cardano (ADA) Price May Skyrocket In Coming Weeks?
Cardano (ADA) price is well positioned for a surge following the recent announcement from the world’s largest digital assets manager. Cardano comprises the biggest share of the recently launched Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE) that tracks the current industry-leading smart contracts platforms other than Ethereum.
How Grayscale’s alternative smart contracts funds could help ADA
Specifically, ADA made up nearly 25% of each share of the fund at launch according to Grayscale’s press release Monday. This could have several positive impacts on the spot price of the asset.
For one, Grayscale’s move gives recognition to the leading role the Cardano blockchain is filling among smart contracts platforms competing with Ethereum. Cardano, while being slow to launch smart contracts capabilities due to its meticulous research approach, has been catching up to other fast movers since its Alonzo Hardfork.
Launches of decentralized applications (dApps) in the Cardano ecosystem have picked up steam, pushing Cardano’s DeFi TVL quickly above $400 million from lower than $100 million in January.
Grayscale’s new fund plays to the advantage of ADA and the other smart contract platform tokens it holds. The firm’s track record has made it highly popular with institutional investors who are known to hold the big bucks.
According to Grayscale’s CEO Michael Sonnenshein, the fund is meant to cater to their needs for diversified exposure to the crypto ecosystem.
Investor demand for diversified exposure has grown in parallel to the ongoing evolution of the crypto ecosystem, said Sonnenshein.
It follows that should the fund catch on, its success could spill over to the spot price of ADA. This has been highlighted in the performance of Grayscale’s GBTC Fund and the price of Bitcoin as recently noted by CoinMetrics.
ADA’s price is posting a bright future
Outside of Grayscale’s fund, the Cardano ecosystem’s bounds and leaps in expansion is also driving positive sentiments for a surge in the price of ADA.
- In recent updates, Cardano’s development arm IOG revealed that the blockchain will have more capabilities come July when an HFC will take place. They have also been carrying out parameters adjustments that have admirers already elated as there have been slight improvements in network congestion.
- ADA is trading at around $0.97, up 3.33% in the last 24 hours, and 19.9% in the weekly chart. However, analysts expect the price of ADA to trade bullish for much of this year.
- One bullish analyst Vanessa Vanessa Harris, the CPO of Permission, told finders that ADA could reclaim its previous high of $3 in 2022.
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