Cardano (ADA) Price: Grayscale Boosts Holdings as Analysts Eye Potential Breakout

TLDR

• Grayscale has increased its ADA allocation in its Smart Contract Fund to over 20.12%, up from 19.50%
• ADA has pulled back to around $0.28 after reaching a weekend high of $0.30
• Analysts see ADA mirroring its 2021 price cycle, with some projecting a potential rally to $3–$9
• Ecosystem activity has dropped since 2021, but remaining projects like Midnight are focused on long-term development
• Upcoming catalysts include the Clarity Act, Midnight’s mainnet launch, and new Bitcoin and XRP DeFi products

Cardano (ADA) is trading around $0.28 after pulling back from a weekend high of $0.30, as the broader crypto market faces another correction.

Despite the price dip, institutional interest in ADA appears to be growing. Grayscale Investments has increased its ADA allocation in its Smart Contract Fund to over 20.12%, up from 19.50% just a week prior.

This marks a second consecutive allocation increase. The move suggests that at least some large asset managers continue to see value in Cardano at current price levels.

The latest allocation is thought to be connected to Cardano’s growing role in the Bitcoin DeFi space. The network is working to bring external BTC liquidity on-chain through non-custodial collateral, stablecoin credit, and lending structures.

Cardano’s smart contract layer enables these tools, which could attract both institutions looking for predictable borrowing and retail users seeking yield on idle Bitcoin.

On the development side, the number of projects building on Cardano has fallen sharply since a peak in 2021, when over 100 new projects launched in a single year.

Minswap’s Chief Meme Officer Mintern noted that while the numbers are down, the projects still building are focused on real, long-term use cases. Midnight, a privacy-focused protocol, is one of the key projects still actively developing on the network.

ADA’s Historical Pattern

Crypto analytics platform Bitcoinsensus has pointed to a pattern in ADA’s long-term price chart that mirrors its 2019–2021 cycle.

In that cycle, ADA spent an extended period below $0.10 before breaking out to $3.10 in September 2021. After a 92.5% decline from its all-time high, ADA briefly spiked to $1.13 in March 2025 before falling back to current levels near $0.28.

Bitcoinsensus argues this structure could set up another expansion phase, with price targets between $3 and $9. That would represent gains of 971% to 3,114% from current levels.

Skeptics push back on those targets, noting that reaching $3–$9 would require Cardano’s market cap to grow to between $100 billion and $300 billion, which would need large liquidity inflows beyond price consolidation alone.

Upcoming Catalysts

Several potential catalysts sit on the near-term horizon. The Clarity Act, which industry figures including Ripple CEO Brad Garlinghouse expect to pass by end of April, could improve regulatory conditions for the broader crypto market.

Cardano’s own roadmap includes the mainnet launch of Midnight and new DeFi products linked to Bitcoin and XRP.

Grayscale’s most recent ADA purchase was made within the past week, bringing its Smart Contract Fund ADA weighting to 20.12%.

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