Cardano's ADA Token Launched on Coinbase's Base Platform for DeFi Access

Cardano (ADA) has been trading steadily around $0.57, with markets showing signs of recovery despite a slight dip in the past day. Interest in ADA is picking up again, particularly with the recent launch of a wrapped version of ADA on Coinbase's Base platform. This move is designed to unlock a wave of decentralized finance (DeFi) functionalities for Cardano, allowing users to trade, lend, and provide liquidity on DeFi platforms that Cardano does not natively support. By wrapping ADA according to the ERC-20 standard, Coinbase offers Cardano users opportunities to engage with DeFi ecosystems outside the Cardano blockchain.

Coinbase has launched cbADA, a wrapped version of Cardano’s ADA token on the Ethereum Layer 2 chain, Base. This allows Cardano users to tap into a wider range of DeFi protocols. This move is part of Coinbase’s broader push to unify liquidity across blockchains, after its earlier launches like cbETH and the recent cbLTC for Litecoin. Backed 1:1 by ADA held in Coinbase custody, cbADA comes with full proof-of-reserves for transparency. This move could boost ADA’s presence across DeFi platforms like Uniswap, PancakeSwap, and Aerodrome.

Cardano is also advancing its long-term scaling strategy with a fresh wave of Layer-2 (L2) innovations, moving beyond the Hydra framework. This next phase was outlined during a high-level research session in June 2025, organized by Input Output Global (IOG), the core development team behind Cardano. The event convened technical leaders from the Intersect Working Group, developers from prominent Cardano-based projects, and academic partners. Together, they outlined a roadmap where Hydra is just one part of a broader L2 portfolio designed to improve speed, privacy, and interoperability across the ecosystem.

Several L2 solutions, including Midgard, Hydra, and others, were spotlighted during the session. Hydra, built initially for fast off-chain transactions, now has two key configurations. One version, Hydra Head, focuses on small, fixed participant groups using state channels, while the other, Hydra Tail, adopts a rollup model aimed at higher transaction volumes. Midgard, developed by Anastasia Labs, was introduced as a Cardano-native optimistic rollup. The project features deterministic fraud proofs and minimal reliance on centralized governance. Its mainnet launch is expected by the end of the year.

Meanwhile, two zero-knowledge-based projects, zkFold and Eryx, featured prominently at the Cardano event. zkFold compresses hundreds of transactions into a single submission for increased efficiency. On the other hand, Eryx aims to deploy a ZK bridge that enables secure communication between Cardano chains. Another presentation came from Sundae Labs, which is working on Gummiworm, a Hydra-inspired rollup that separates execution from custody. This change could support more flexible DeFi operations on Cardano.

The panelists emphasized that Cardano’s future depends on a portfolio of interoperable L2s, rather than a single dominant solution. They stated that each L2 will serve distinct roles, maintaining composability through common standards and shared infrastructure. The goal is to offer a portfolio of solutions optimized for different use cases—ranging from DeFi and privacy to high-throughput applications—underpinned by shared standards that ensure seamless cross-protocol interaction. However, they noted that challenges like liquidity fragmentation and poor user experience remain hurdles to adopting the L2 solutions. Due to this, they proposed several solutions, including liquidity bonding, better cross-protocol integration, and incentive structures that reward users and developers.

According to analyst Dan Gambardello, Cardano is setting up for a major move, with $2 as the next big target. It is following a familiar path from the last bull cycle. If history repeats, a quick rally from around $0.59 to $2 could happen in weeks or a few months. Although a dip to $0.30–$0.40 is still possible but that would be normal before a breakout. He believes this cycle is even stronger than the last, with lower interest rates, rising adoption, and pro-crypto regulation.

Technical indicators show a cautious picture for ADA. Most moving averages are flashing sell signals. The RSI sits at 36.32, close to oversold levels, which shows that a bounce may come soon. ADA is still down 65% from its all-time high of $3.09, and investors are watching closely for either a recovery or another dip. Over the past few days, ADA has attempted to push higher but is facing resistance around the $0.58 level. Buyers will need to step up for ADA to continue its rebound. A clean move above $0.60–$0.62 could open the door for further upside.