Cardano is outperforming many other L1s as it approaches the 1 USD mark, with a surge in social discussions and information about the ETF from Grayscale triggering optimistic sentiment among investors.
ADA has broken through the resistance after 5 months of adjustment, thanks to strong whale money inflow, signaling new bullish prospects. However, the current upward momentum is still influenced by derivative activity and market sentiment.
MAIN CONTENT
Cardano is outperforming many Layer 1s, aiming to challenge 1 USD, thanks to whale money and potential ETF effects.
Price momentum has driven large trading volumes, yet the market still harbors risks from leverage and liquidity clusters.
On-chain data, social network dynamics, and derivative volatility reflect strength but also pose short-term challenges for ADA.
How has Cardano (ADA) recently performed compared to other Layer 1s?
Cardano (ADA) is showing clear relative strength compared to other Layer 1s, as the price surpasses the 0.90 USD mark after 5 months of accumulation and reaches an increase of over 30% in just one week.
ADA is showing superior momentum compared to Bitcoin and other Layer 1 competitors. A price increase of over 15% in 24 hours and over 30% in a week indicates new money is increasingly flowing into the Altcoin group.
Santiment, On-chain data platform, August 2025
Data from CoinGlass and Santiment platforms shows that large transactions (over 100,000 USD) from whales have surged from 86 to over 1,000 per week. This is a positive sign of accumulation, bringing ADA to the center of attention for institutional investors.
In addition, the Social Volume index of ADA recorded over 20,000 mentions, reflecting the community's activity, especially when news of Grayscale filing for an ETF proposal for ADA emerged. Compiling these factors, ADA is approaching the 1 USD liquidity testing zone - a threshold that traders are paying attention to as capital is gradually returning to Altcoins.
Why do whale activity and Grayscale's ETF moves strongly affect Cardano's price?
ADA whales and ETF information serve as strong psychological catalysts, contributing to pushing ADA's price from large trading volumes and the positive sentiment of the market.
Typically, the presence of transactions over 100,000 USD indicates significant accumulation from institutions or investment funds, creating short-term upward pressure on Altcoins like ADA.
Glassnode, Cryptocurrency market report August 2025
Last week, the number of transactions of 100,000 USD or more on the Cardano network skyrocketed, signaling a significant buying process. At the same time, Grayscale's filing for an ADA ETF has contributed to raising investor expectations for broader recognition of ADA.
These factors simultaneously create a liquidity squeeze, causing ADA to increase over 30% in the week. However, investors should note that price increases triggered by whales and ETF news can be cyclical and easily adjustable when the spillover effect weakens.
What does ADA breaking resistance and the signs of technical strength mean?
ADA had to attempt three times before successfully breaking through the resistance around 0.90 USD, confirming strong buying pressure from new money and setting the stage for the possibility of testing the 1 USD area.
The breakout scenario often recurs in assets like ADA, with strong unexpected buying pushing the price above psychological thresholds, leading to a chain of FOMO actions and new liquidity clusters.
LunarCrush, Cryptocurrency market analyst, August 2025
Technical data shows that spot buying pressure has not fully exploded, meaning there is still room for further increases due to latent demand. However, the market also records the accumulation of liquidity clusters below the current price range, creating short-term technical adjustment risks if demand weakens or large-scale profit-taking occurs.
ADA's 71% increase in the last quarter also creates a significant psychological advantage, especially when this figure is only lower than Ethereum's 90% but far surpasses Layer 1 competitors like Solana by over 50%. This shows that ADA is the preferred choice for institutional money during the strong Altcoin market recovery.
Derivative leverage, Open Interest, and what risks are associated with Cardano?
The heat around ADA also comes from the derivatives market, as Open Interest surged 25% to 1.88 billion USD in just 24 hours, more than 5 times the growth rate of the largest Altcoin in the market.
Rapidly increasing Open Interest may reflect expectations of large profits but also carries the risk of a cascading liquidation when the market reverses.
CoinGlass, Derivatives data report August 2025
Open Interest increases due to large open positions from investors, indicating that the ADA market is highly leveraged, leading to stronger volatility when adverse variables arise. Notably, the crowded positioning phenomenon - when many traders open positions in one direction - makes ADA susceptible to bull traps or volatility traps.
Additionally, although large whale volumes are accumulating, trading activity around the 1 USD mark is mainly characterized by short-term spikes, influenced by both derivatives and social sentiment. After the strong increase, thick liquidity clusters below will determine the support area if a technical adjustment occurs.
Can Cardano successfully test the 1 USD mark in the current context?
Summarizing all market data, ADA is approaching the challenge of 1 USD - a zone determining the network's supply and demand as well as important sentiment for medium to long-term investors.
The positive indicator is a strong increase in social volume, continuous inflow of whale money, and derivative money supporting the upward trend. Conversely, factors such as thick liquidity clusters and high leverage ratios still pose risks of a short-term retreat if new buying momentum is not maintained.
According to assessments from various in-depth platforms like Santiment and CoinGlass, ADA needs to consolidate demand in the 0.90–1 USD range to establish a sustainable breakout scenario. Otherwise, the possibility of profit-taking and technical traps could occur, especially as large-scale trading indicators gradually cool down.
Recent quarterly performance comparison table between ADA and Layer 1s
Layer 1 Project Growth Quarter (%) Open Interest Last 24h (billion USD) Ethereum (ETH) 90% - Cardano (ADA) 71% 1.88 Solana (SOL) approximately 21% -
Frequently Asked Questions
Is Cardano (ADA) currently the strongest growing Layer 1 coin?
ADA is not the strongest growing Layer 1 coin, but with a 71% increase in the last quarter, ADA ranks just behind Ethereum and outperforms SOL by over 50% (Data: CoinGlass, August 2025).
How does Grayscale's ETF proposal affect ADA's price?
The information about Grayscale filing for the ETF helps boost market expectations, enhancing positive sentiment and whale trading volume for ADA, leading to a sharp price increase.
Why is whale activity so closely watched for ADA?
Large whale trades reflect strong institutional accumulation, which could lead to price spikes or volatility when profit-taking occurs.
What does high Open Interest indicate about ADA's risk?
Rapidly increasing Open Interest indicates many leveraged positions are being opened, making the volatility stronger and raising the risk of liquidation when the market reverses.
Can ADA stabilize above the 1 USD mark?
ADA approaches 1 USD thanks to a solid technical foundation, but it needs to maintain buying pressure to avoid liquidation or adjustment from strong liquidity clusters.
What factors could cause a strong adjustment for ADA?
Thick liquidity clusters below 1 USD, profit-taking by investors, and high leverage derivative risks are key factors that could cause ADA to adjust in the short term.
What signs indicate that large money continues to support ADA?
Strong whale trading, high Social Volume metrics, and potential ETF inflows are validating the strength of money flow with ADA.
Source: https://tintucbitcoin.com/ada-ap-sat-moc-1-usd/
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