1*What niche does Cardano occupy?

Cardano is positioned as a third-generation blockchain, aimed at solving three main problems of previous networks (Bitcoin, Ethereum):

Scalability (speed and low fees)

Interoperability (the ability to communicate with other networks and the traditional financial system)

Sustainability (self-financing through decentralized governance)

In short:

→ Smart contracts + scalability + scientific approach = secure, sustainable foundation for global applications (DeFi, ID systems, government registries, logistics).

2*Recent significant events

1. Inclusion of ADA in the U.S. strategic crypto reserve

In March 2025, President Donald Trump announced the creation of the U.S. strategic crypto reserve, which included XRP, Solana, Cardano, Ethereum, and Bitcoin. This step increased the institutional legitimacy of ADA and could attract additional investments.

2. Potential approval of an ADA-based ETF

In February 2025, Grayscale applied to launch an ETF based on ADA. If the U.S. Securities and Exchange Commission (SEC) approves this fund, it could significantly increase the influx of institutional investments in ADA.

3. Launch of the Plomin hard fork and implementation of decentralized governance

The Plomin hard fork, conducted in January 2025, implemented a delegated representatives (dReps) mechanism, which strengthened the decentralization of network governance. This event reinforces trust in Cardano as a self-governing platform.

4. Development of confidential computing through Midnight and ZK technologies

In November 2024, Cardano implemented its first smart contract using zero-knowledge proofs (zk-SNARKs) based on the Halo 2 system. This paves the way for the creation of confidential applications and increases the network's attractiveness to developers.

5. Activity of major investors (whales)

After the announcement of the creation of the U.S. crypto reserve, major investors acquired over 420 million ADA, indicating growing interest in the token and potentially contributing to further price growth.

3* The current state of key components of the Cardano ecosystem

Voltaire (roadmap) is actively being implemented; dReps and voting on updates have been introduced. This strengthens the decentralization and resilience of the network.

Hydra (scalability) is in testing; launch is expected in 2025. This will increase throughput and reduce fees.

Midnight (privacy) continues to develop; integration with ZK technologies is underway. This will expand opportunities for creating private applications.

Mithril (lightweight nodes) was launched in 2024; it improves node synchronization. This simplifies participation in the network and enhances security.

DeFi projects are actively developing; leaders are Minswap, Liqwid, Indigo. They increase the use of ADA and attract users.

Minswap

This is the largest decentralized exchange (DEX) on Cardano. It allows users to exchange tokens directly without intermediaries. Supports liquidity pools and farming. Aims to be as accessible and inexpensive as possible for users.

Liqwid

A lending and borrowing protocol based on Cardano. Allows earning passive income through providing liquidity or taking loans secured by crypto assets. Built as a fully decentralized alternative to bank loans. Focus on transparency and self-governance through DAO.

Indigo

A platform for issuing synthetic assets on Cardano. It allows the creation of tokens that reflect the price of real assets (such as stocks or cryptocurrencies). Users can trade these assets without actually owning them. This expands access to global financial markets through blockchain, allowing to bypass legislative restrictions.

The NFT ecosystem shows steady growth; popular projects include Clay Nation and SpaceBudz. This attracts some investors.

4*Key figures in the Cardano ecosystem

Charles Hoskinson — founder of Cardano and CEO of Input Output Global (IOG).

(Previously co-founder of Ethereum. Left due to disagreements on development vision.)

Input Output Global (IOG, formerly IOHK) — the company responsible for the development of the Cardano protocol.

Emurgo — the commercial division of Cardano (helps businesses integrate Cardano).

Cardano Foundation — a Swiss non-profit organization promoting Cardano at the business and regulatory level.

Frederik Gregaard — CEO of Cardano Foundation.

Tim Harrison — Director of Communications at IOG

5*Some potentially positive opportunities for ada

USA and crypto reserve

→ Inclusion of ADA in the national crypto asset reserve of the USA increased institutional legitimacy.

Charles Hoskinson and connections with the government

→ Possible role in advising U.S. crypto policy. This is unofficial, but if confirmed, it would be a huge boost in trust for Cardano.

Africa (Ethiopia, Kenya, Rwanda)

→ Cardano is developing identity registries and educational platforms through Atala PRISM.

→ If official state agreements are made, this will bring millions of new users into the ecosystem.

Hydra + Mithril (technological breakthroughs)

→ Successful launch of Hydra heads will allow processing thousands of TPS without overloading the network.

→ Mithril will improve the performance of lightweight wallets and nodes → mobile and dApp applications will be able to use Cardano faster, cheaper, and more securely.

Trend of projects leaving Ethereum

→ Due to high gas fees and speed issues. Cardano is one of the most likely 'new homes' for DeFi projects seeking a cheap and reliable network.

6*Competitors

Ethereum

The main competitor in the field of smart contracts, DeFi, NFTs.

Danger: Very high — dominates the sector but suffers from network overload and high fees. The 'Vitalik Buterin factor' may also be a weakness for Ethereum.

Solana
A blockchain focused on high speed and low fees. Actively growing due to meme coins and DeFi.
Danger: High — quickly builds a user base, although it occasionally suffers from outages.

Avalanche
A blockchain with fast transaction finalization and support for subnets. Strong DeFi and institutional focus.
Danger: Medium — there is growth in niches, but the overall ecosystem is weaker than Ethereum and Solana.

Polkadot

A platform for connecting different blockchains through parachains. Emphasizes compatibility.
Danger: Medium-low — the concept is powerful, but implementation complexity and waning interest slow growth. Possible in the long term.

Cosmos
Focus on creating interconnected independent blockchains. Emphasizes scalability without overloading the main network.
Danger: Low — good technologies, but weak marketing and low recognition among the general audience. Possible in the long term.

Algorand
A blockchain focused on speed, security, and clean energy. Strong focus on corporate projects.
Danger: Low — interesting to companies, but has not attracted the mass crypto community.

6. Influence of competitors

Ethereum
Still retains the majority of developers and projects. Cardano is losing out to it in terms of DeFi, NFT, and users.

Solana
Successfully captures retail users and DeFi enthusiasts due to speed and low cost. In recent months, some new users and projects have moved there.

Avalanche
There was a slight outflow of projects, but mainly in the DeFi niche. For Cardano, the threat is moderate.

Polkadot
Does not directly take users from Cardano. Internal ecosystem problems have slowed growth.

Cosmos
Minimal influence — focused on a different development model (interoperability).

Algorand
Practically does not compete for the same audience. Operates more in the government contracts and corporate solutions sector.

In brief:

Solana and Ethereum are real threats right now.

Avalanche — moderate threat.

Polkadot, Cosmos, Algorand — at the moment they hardly interfere with Cardano.

Very brief summary

For long-term investments, it clearly wouldn't hurt to have it in the portfolio. A number of points have been mentioned that could signal upcoming growth. Ethereum does not demonstrate total superiority in its niche. It may not be a mistake to call Cardano a main competitor to Ethereum. The information presented here is not exhaustive; I recommend studying it independently due to the complexity of this project. There are more side projects than listed here. One of the interesting ones is Axo (a mix of Uniswap and a traditional exchange), which had an NFT collaboration with Snoop Dogg.