Cardano ADA Futures Volume Hits 5-Month High on Rising ETF Hopes

Cardano (ADA) is experiencing heightened market interest, with its futures trading volume reaching a five-month high of nearly $7 billion, signaling growing institutional and retail participation. The increased activity coincides with a rise in the perceived probability of an ETF approval for Cardano, now estimated at 75% by market observers. This development has fueled speculation that ADA could become the next major asset to be included in a regulated financial product, following recent ETF filings for assets like Hedera and Solana [1].

ADA is currently trading at $0.9177, with a 24-hour decline of 4.53%. Despite this short-term dip, the token has posted impressive annual gains, including a year-on-year increase of 172.15% and a year-to-date gain of 8.82%. However, it remains 44.55% below its all-time high of $3.09 [1]. The price is now retesting the $1 psychological level, which has historically acted as a key marker for ADA’s price performance.

On-chain activity also reflects strong confidence in the ecosystem. Whale transactions, including a notable purchase of 200 million ADA, suggest accumulation by large holders. Additionally, the recent 1 billion Midnight token claims have significantly increased on-chain interactions, underscoring a broader trend of network engagement [2]. Institutional activity appears to be playing a role as well, with buy walls emerging in the $0.89–$0.90 zone, potentially limiting downside risk [3].

The Cardano network is also seeing progress in its Voltaire governance era, with the implementation of an on-chain treasury and voting system. These upgrades aim to decentralize decision-making, allowing ADA holders to influence the direction of the protocol directly. Such governance innovations are expected to enhance the network’s sustainability and long-term viability [3].

Meanwhile, DeFi activity on Cardano is rising, driven by protocols like Liqwid Finance and Midnight Network. The 70% staking participation rate further reinforces network security and user commitment, while the multi-asset ledger and Plutus smart contract layer continue to attract developers and users looking for alternatives to Ethereum [3].

Technically, ADA has flipped the $0.90 level from resistance to support, and a continuation of the current bullish momentum could push the price toward $1.05 and potentially $1.15. Analysts note that institutional positioning and ongoing DeFi adoption are likely to play a crucial role in determining whether ADA can break through the $1 threshold and sustain a higher range [3].

The broader cryptocurrency market is also supporting ADA’s bullish trajectory. Bitcoin is consolidating above $116,000, while Ethereum is nearing $4,350, creating a favorable environment for altcoins to outperform. As the DeFi rotation gains momentum, ADA’s growing utility and institutional interest could position it as a key asset in the next phase of the market cycle [3].

Source:

[1] ADA/Tradingview

[2] Coinglass

[3] Glassnode