Key Takeaways:
Cardano’s price surged 80% after Trump announced it as part of the U.S. Crypto Reserve, marking its sharpest one-day gain in years.
The crypto community remains divided on whether assets beyond Bitcoin should be included in federal holdings, with some calling for a broader crypto index.
Institutional interest in Cardano is growing, as whale wallets holding 1M-10M ADA increased following the U.S. Crypto Reserve announcement.
Cardano (ADA) has surged nearly 80% since Donald Trump announced it would be part of the U.S. crypto reserves.
ADA price saw a sharp increase on March 2-3, jumping from $0.64 to $1.14, marking a 78% gain in a single day. However, on Monday, the price dropped amid uncertainty over the crypto Strategic Reserve.
A similar rally occurred in November 2024, when ADA surged from $0.32 to $1.08 during the U.S. presidential election race, posting a 237% monthly gain. However, before November, Cardano had struggled to stay above $1 for most of 2024.
Cardano’s last all-time high (ATH) was $3.09 on Sep. 2, 2021—over four years ago.
Whether ADA’s price growth was fundamental or purely hype-driven remains a topic of debate. Darren Franceschini, Co-Founder of Fideum Group, told Cryptonews that Cardano’s momentum is likely to continue long-term:
“I expect ADA to have very good momentum in 2025 and beyond since their approach is very methodical, and it is a chain that is not riddled by scandals, rugs, or value extraction from retail investors.”
‘I Will Make Sure the US Is the Crypto Capital of the World’ – Trump’s Crypto Reserve Sparks Debate
Donald Trump’s Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile are key components of the new administration’s crypto strategy. While this appears to be a bullish signal for the market, many in the crypto community remain skeptical.
On March 2, Trump announced the creation of the U.S. Crypto Reserve on Truth Social, which includes Cardano, XRP (XRP), and Solana (SOL) alongside Bitcoin.
Source: Truth Social
As expected, the announcement triggered price surges:
Among these, Cardano led the gains, while Solana lagged, likely due to ongoing fallout from meme coin scandals.
Darren Franceschini, Co-Founder of Fideum Group, believes including multiple crypto assets was a logical choice despite the controversy:
“Needless to say, it has led to a divide in opinion on whether assets beyond BTC should be included in federal holdings. It was a very logical move by this administration to have a basket of crypto assets with the largest capitalization, excluding stablecoins as they are standalone categories.”
The crypto community remains divided. Some argue that a Bitcoin-only reserve would have been sufficient, given its status as digital gold.
Brian Armstrong, Co-Founder & CEO of Coinbase, suggested that a crypto index could be a better alternative.
Arthur Hayes also voiced opposition to the U.S. Digital Asset Stockpile.
What Are the Prospects for Cardano as a US Crypto Reserve?
Darren Franceschini sees strong prospects for Cardano, arguing that its blockchain is well-suited for institutional investors due to recent upgrades:
“Cardano and IOG have built an institutional-grade blockchain, especially with the recent developments on Midnight, which focuses on regulatory compliance and privacy.”
Midnight is a Layer 1 (L1) blockchain built on Cardano, designed for data protection while maintaining decentralization.
Franceschini believes Midnight will help expand Cardano’s use cases, particularly in Real World Assets (RWAs), boosting its adoption and price:
“The Midnight project, which is not an L2 but a sidechain, will bring more adoption and use cases such as regulated RWAs and digital identity. These will fuel protocol growth and positively impact the price. Having done the infrastructural heavy lifting and securing pilot or production projects with governments and large institutions, Midnight and the ADA blockchain will see great traction and adoption.”
Institutional interest in Cardano may have already increased after the U.S. Digital Asset Stockpile announcement. Santiment data shows that since March 2, wallet addresses holding 1M-10M ADA have grown by 16.5%.
Cardano remains one of the market’s most stable blockchains. Unlike Solana, it has not been involved in major scandals. It is also one of the oldest crypto projects, launched in 2017.
However, apart from price surges in November 2024 and March 2025, Cardano has not broken its previous ATH in over four years. In contrast, Solana and XRP have surpassed their past highs multiple times.
It’s unclear whether Cardano is in an accumulation phase, but its 80% surge in one day suggests its price remains highly responsive to news like the U.S. Digital Asset Stockpile.
Additionally, while Donald Trump is viewed as a crypto-friendly president, the crypto market saw one of its largest liquidations in February 2025 after his inauguration. If Cardano’s inclusion in the U.S. crypto reserve offers any protection, it could help shield the coin from similar volatility in the future.
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