Recently, Cardano (ADA) has shown dramatic performance in the market. Affected by Federal Reserve policies, ADA once fell to $0.76 but subsequently rebounded strongly to $0.95, re-establishing itself above the 50-day moving average, indicating that market sentiment has stabilized【9】.
One of the key factors influencing ADA's future trajectory is the 'Trump Effect.' With Trump's victory, the U.S. regulatory attitude toward cryptocurrencies is expected to become more favorable, and Cardano's founder, Charles Hoskinson, has even been rumored to potentially become a cryptocurrency advisor to the Trump administration. Additionally, Cardano has established a policy office in Washington, demonstrating its determination to actively participate in regulatory discussions, which may bring more market confidence to ADA【10】.
In terms of technological development, Cardano continues to promote Layer 2 solutions like Hydra and cross-chain integration, such as collaborating with BitcoinOS to release Bitcoin liquidity; these initiatives may further strengthen its ecosystem in 2025【10】. Notably, Cardano also plans to introduce Bitcoin DeFi applications in May 2025, which could bring new growth momentum【9】.
However, Cardano still faces challenges, as its development speed is slower compared to other public chains (such as Ethereum, Solana), and its ecosystem is relatively thin. The price of ADA is significantly influenced by market sentiment, and investors should cautiously assess the risks【10】.
Overall, there are many variables concerning ADA's future; political influences, technological developments, and market acceptance will jointly determine its performance in 2025.