Cardano’s Price Hinges on SEC Decision Amidst Ecosystem Challenges
Cardano’s price is hovering around $0.773 this week. It’s slightly above the month’s low of $0.508 but still 50% below its year-to-date high. The spotlight is on the upcoming SEC decision regarding the Grayscale Cardano ETF.
Traders on Polymarket are optimistic. The odds of SEC approval for a spot ADA ETF have climbed to 71%, the highest since late April. However, a May 29 deadline looms, and a delay seems more likely based on recent SEC actions.
Despite these positive expectations, Cardano faces notable hurdles. Its ecosystem underperforms compared to other layer-1 and layer-2 chains. As an example, it hosts just 48 DeFi apps with a total value locked of $443 million and $31 million in stablecoins. This contrasts with Unichain, which has 27 apps, $568 million in assets, and $221 million in stablecoins. Unichain has processed over $14 billion in decentralized exchange transactions, while Cardano has yet to reach $5 billion.
Cardano’s growth strategy involves integrating BitcoinOS, enabling Bitcoin staking.However, this technology already exists with platforms like Babylon Protocol and Lombard Finance, which manage over $7 billion in assets.
Technically, ADA could see a bullish breakout. The weekly chart shows a giant megaphone pattern, often preceding a major move. Holding above the 100-week moving average supports a longer-term bullish outlook. A sustained rebound could see ADA retest last year’s high of $1.307,about 73% above current levels.A breakout above this could target the $2 mark.
