Cardano is on the agenda with a $100 million fund plan to strengthen the DeFi ecosystem.

Cardano (ADA) may be approaching an important milestone in the decentralized finance (DeFi) space. The $100 million 'sovereign investment fund' proposed by the network's founder Charles Hoskinson could support potential increases in the ADA price and strengthen the ecosystem in the long term.

Purpose and Operation of the Fund

According to Hoskinson, 5% to 10% of the Cardano treasury will be directed towards assets like Bitcoin and USDM (Cardano's native stablecoin) and yield-generating products. This fund will operate with a self-sustaining model:

Liquidity will be provided,

Passive income will be generated through staking,

With this income, ADA will be repurchased to grow the treasury.

This mechanism could both reduce ADA supply and increase the sustainability of the ecosystem.

Could it be an alternative to Ethereum and Solana?

Hoskinson stated that if this strategy is implemented year by year, Cardano's stablecoin-based fund could reach $1 billion in 5 to 10 years. This size could enable Cardano to compete more strongly with large DeFi platforms like Ethereum and Solana.

The fund's inclusion of Bitcoin is also a noteworthy detail: Hoskinson emphasizes that this serves as a safe 'protection layer' against inflation risk.

But Everything Depends on the Community

For this plan to be realized, the approval of the Cardano community is needed. According to Cardano's decentralized governance model, such large-scale strategic steps depend on community support.

There are also disagreements within the community regarding this plan. Some users are concerned that the 9-digit selling pressure could have negative effects on the ADA price in the short term. For example, a user named Cardano Whale commented, 'If a $140 million ADA sale is planned at $0.70, the market will pull this price down to $0.50.'

Cardano Technical Outlook: Is the Price Ready to Break?

Hoskinson's fund move could create a positive structure for ADA in the long term. However, how this news will be priced in the short term depends on technical indicators and market sentiment.

The ADA price has been trapped within a descending wedge formation for 7 months. It is currently at the $0.60 level, trying to hold onto the 0.236 Fibonacci support. This area has been a strong demand zone since late 2024. However, technical indicators are currently signaling weakness:

The RSI (Relative Strength Index) was rejected from the 50 level and a loss of momentum occurred.

The MACD indicator continues the downtrend after the 'death cross' that occurred at the beginning of June.

If the $0.60 support is lost, the possibility of ADA declining to $0.50 may come up. This would mean a decrease of about 14%. In the opposite scenario, if the formation breaks upward, the technical target of $1 may become valid again.

New Catalyst: Cardano ETF Decision

Eyes are now turned to the Cardano ETF decision expected to be announced on July 15, 2025. This decision could create a significant leap in both ADA demand and price momentum by increasing traditional investor interest.


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