Cardano's ADA Token Surges 200% on Coinbase's cbADA Launch

Cardano (ADA) is currently trading around $0.57, showing signs of market recovery despite a slight dip in the past day. The interest in ADA is resurging, driven by increased trading activity and positive developments within the Cardano ecosystem. One of the key developments is the launch of cbADA, a wrapped version of Cardano’s ADA token on the Ethereum Layer 2 chain, Base, by Coinbase. This move allows Cardano users to access a broader range of DeFi protocols, aligning with Coinbase’s strategy to unify liquidity across different blockchains. Previous launches by Coinbase, such as cbETH and cbLTC, have paved the way for this integration.

cbADA is backed 1:1 by ADA held in Coinbase custody and comes with full proof-of-reserves for transparency. This development is expected to enhance ADA’s presence on various DeFi platforms, including Uniswap, PancakeSwap, and Aerodrome. The launch of cbADA on Base is part of Cardano’s broader strategy to improve its scalability and interoperability through a portfolio of Layer-2 (L2) innovations. This move enables Cardano to tap into the vast DeFi ecosystem, traditionally dominated by Ethereum, offering users a wider range of financial services and applications. The transparency pages already show 2,963,259.36 ADA issued on Base via Coinbase, indicating a substantial initial backing for the wrapped token.

Cardano’s fundamentals are also showing strength, with open interest in Cardano futures jumping to 1.2 billion ADA. The Midnight Glacier airdrop has sparked fresh interest in Cardano, with over 200,000 mentions on X in a week. Currently, ADA is holding strong near $0.57, with solid support at $0.51. While it may revisit $0.51, it could present a prime buying opportunity for long-term holders. Analyst Dan Gambardello predicts that Cardano is setting up for a major move, with $2 as the next big target. He believes that 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, he considers this cycle even stronger than the last, with lower interest rates, rising adoption, and pro-crypto regulation.

Technical indicators for ADA show a cautious picture. Most moving averages are flashing sell signals, and the RSI sits at 36.32, close to oversold levels, which suggests 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.

Cardano’s long-term scaling strategy involves a fresh wave of Layer-2 innovations, moving beyond the Hydra framework. During a high-level research session in June 2025, organized by Input Output Global (IOG), the core development team behind Cardano, technical leaders from the Intersect Working Group, developers from prominent Cardano-based projects, and academic partners outlined a roadmap for a broader L2 portfolio. This portfolio is designed to improve speed, privacy, and interoperability across the ecosystem. Several L2 solutions, including Midgard, Hydra, zkFold, Eryx, and Gummiworm, were spotlighted during the session. Each of these solutions serves distinct roles, maintaining composability through common standards and shared infrastructure.

Hydra, initially built for fast off-chain transactions, now has two key configurations: Hydra Head, which focuses on small, fixed participant groups using state channels, and Hydra Tail, which adopts a rollup model aimed at higher transaction volumes. Midgard, developed by Anastasia Labs, is a Cardano-native optimistic rollup featuring deterministic fraud proofs and minimal reliance on centralized governance. Its mainnet launch is expected by the end of the year. zkFold and Eryx are zero-knowledge-based projects that aim to compress transactions and enable secure communication between Cardano chains, respectively. Sundae Labs is working on Gummiworm, a Hydra-inspired rollup that separates execution from custody, supporting 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, challenges like liquidity fragmentation and poor user experience remain hurdles to adopting the L2 solutions. To address these issues, several solutions were proposed, including liquidity bonding, better cross-protocol integration, and incentive structures that reward users and developers.