Why is the Cardano (ADA) Price Up Today?

TL;DR

• Cardano (ADA) saw extreme price swings lately, jumping by almost 20% in the last 24 hours.
• The bullish momentum could result from multiple factors, such as the potential listing of the asset on Gemini.

ADA on the Run Again

Cardano’s native token has experienced huge volatility in the past few days. On March 3, its price skyrocketed above $1.10 after Donald Trump confirmed that his administration would establish a strategic crypto reserve that includes ADA and other cryptocurrencies.

However, the rally was short-lived, and the asset plunged below $0.80 just a day later. The past 24 hours, though, continued the roller coaster, with ADA’s valuation jumping by double digits. Currently, it trades at roughly $0.93 (per CoinGecko’s data), representing a 17% pump on a daily scale. 

One potential factor contributing to ADA’s resurgence is the overall revival of the cryptocurrency sector. The total market capitalization neared $3 trillion again, while Bitcoin (BTC), Ethereum (ETH), and many other leading digital assets have charted substantial gains in the last 24 hours. 

Another bullish element could be Tyler Winklevoss’ post on X (formerly Twitter). The co-founder of Gemini hinted that the exchange might list ADA in the near future. On the other hand, the billionaire doesn’t find Cardano’s native token suitable to be included in the strategic crypto reserve proposed by Trump. 

Charles Hoskinson (Cardano’s founder), who has previously encouraged Gemini to embrace ADA, replied to the Winklevoss’ post, saying “much obliged.” 

The US-based platform is among the few leading ones that do not allow trading services with the coin. Those that have listed it over the years include Binance, Coinbase, OKX, Kraken, KuCoin, Bitget, Bybit, and more.

Waiting for an ETF Approval

An additional factor that may trigger an ADA price surge is the potential launch of a dedicated spot exchange-traded fund (ETF) in the United States that will allow investors to gain exposure to the asset without purchasing it directly from exchanges and worry about self-custody. 

Earlier this year, the world’s largest digital asset manager – Grayscale – filed with the US SEC to introduce that type of product. Towards the end of February, the agency acknowledged the application, starting a regulatory review process that usually lasts 240 days. 

According to Polymarket, the odds of such an investment vehicle going live before the year’s end are over 70%.