Cardano (ADA) Surges 5% After Historic Treasury Funding Approval

Cardano (ADA) has seen renewed market activity following a landmark governance decision where the community approved the first-ever treasury funding for core network upgrades. On August 3, more than 73% of voters supported the proposal, unlocking funds from the Cardano Treasury for public use for the first time. This marks a pivotal moment in Cardano’s development and governance model, showcasing the community’s ability to play an active role in shaping the network's future [1].

The successful vote followed the implementation of the Chang hardfork upgrade, which enhanced Cardano’s governance capabilities and enabled the community to have greater control over development decisions. The approved proposal included system upgrades and tools aimed at supporting the long-term growth of the Cardano ecosystem. Input Output Engineering, part of Input Output Global, led the initiative, reflecting the confidence of the technical team in the project’s trajectory [1].

ADA’s price reacted positively to the news, rising to $0.7265, a 5% increase within 24 hours. The token’s market capitalization reached $25.65 billion, with daily trading volume hitting $1.01 billion. The price surge was further supported by the anticipation surrounding the Midnight airdrop, which will distribute 24 billion NIGHT tokens to ADA holders and is considered one of the most anticipated token distributions of the year. Over one million wallets are set to qualify for the airdrop [1].

The market’s optimism is also reflected in on-chain metrics. Open Interest has recovered to $215 million, indicating increased trading activity. ADA’s social dominance, measured by online discussions, has reached 1.65%, suggesting greater visibility and engagement within the broader cryptocurrency space. These metrics support the view that Cardano is gaining traction amid a broader industry rally [1].

Looking ahead, the $71 million treasury fund will be allocated to improve the network’s transaction capacity, cross-chain compatibility, and developer infrastructure. These upgrades aim to enhance the functionality and scalability of the Cardano platform. The successful allocation of funds and the ongoing development of new features have raised expectations for future growth [1].

Analysts have also pointed to potential price targets based on technical patterns. ADA has formed a cup-and-handle pattern since 2022, suggesting a possible breakout above the $0.90–$0.93 resistance level. If ADA breaks this level, it could reach price targets ranging from $1.15 to $4.00, according to one crypto analyst [1].

Meanwhile, the Snek memecoin community has requested 5 million ADA from the treasury to fund exchange listings. However, Charles Hoskinson, founder of Cardano, suggested structuring the funding as a bond to ensure repayment with interest over three years. He emphasized that treasury funds should not be used for listing fees, including for projects like Midnight, and called for financial responsibility in the use of public resources [1].

The Snek proposal has sparked broader discussions about the criteria for allocating treasury funds, with some arguing that projects with sufficient liquidity, such as Snek, could follow bond-style repayment models. This debate highlights the evolving governance dynamics within the Cardano ecosystem [1].

As the Cardano network continues to develop, the coming months will be crucial in determining whether these positive catalysts—such as the airdrop, treasury upgrades, and improved governance—translate into sustained price growth. With ADA’s price consolidating in the $0.60–$0.90 range for over a year, the market is now at a pivotal moment. A successful breakout could signal a broader shift in investor sentiment and position Cardano as a key player in the evolving crypto landscape [1].

Source: [1] Cardano (ADA) Price: Token Reaches $0.38 After Treasury Allocates $17.1M to Projects

https://blockonomi.com/cardano-ada-price-token-reaches-0-38-after-treasury-allocates-17-1m-to-projects/