The recent announcement by President Donald Trump about the "Strategic Reserve for Cryptocurrencies" in the United States has a significant impact on the cryptocurrency market, particularly on assets like Cardano (ADA).

Trump's Announcement about the Strategic Reserve for Cryptocurrencies

On March 2, 2025, President Trump unveiled plans to create a national reserve for cryptocurrencies, aiming to position the United States as the "cryptocurrency capital of the world." The proposed reserve includes five major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). This initiative seeks to enhance the United States' dominance in the global cryptocurrency market and support financial innovation.

Market Reactions and Cardano's Performance

The announcement triggered a significant spike in the cryptocurrency market, with the global cryptocurrency market witnessing a $300 billion increase. Cardano (ADA), in particular, saw its price rise by up to 60% following the news. However, this increase was short-lived; within hours, the price of ADA dropped to below $1. This decline is attributed to reduced network usage and waning interest from developers.