The Cardano Foundation spent $15 million on efforts to boost network usage, but the price of $ADA
Has not risen yet.
Efforts to boost the price of Cardano (ADA) have not yet yielded consistent returns. On Thursday, June 10, the Cardano Foundation released a report detailing its spending in 2024. According to the report, the foundation spent $15 million on adoption, including impressive deals such as those made with FC Barcelona.
The report details that total expenditures for 2024 amounted to $29.2 million. Of this amount, $22.1 million was allocated for expansion in strategic areas, including adoption, core operations, and education. An additional $7.1 million was allocated to support these core areas, including legal, financial, and network infrastructure.
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The funds came from the Cardano Foundation's assets, which totaled $659.1 million at the end of 2024. The majority of these funds, or 76.7%, were in $ADA , 14.9% in Bitcoin (BTC), and 8.3% in cash and other assets. According to Frederik Gregaard, CEO of the Cardano Foundation, the goal is to ensure these funds are used effectively.
Frederik Gregaard from the Cardano Foundation stated: "The focus is on maintaining a sustainable balance between costs and income while maximizing impact on the broader ecosystem."
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When will the price of Cardano rise?
Despite this spending, the price performance of Cardano has been lackluster this year. After a significant rise in November, when ADA reached its annual high of $1.32, the price has been in a continuous downward trend. Currently, the price of Cardano has dropped by 50% from its highs in December of last year.
Moreover, Cardano has not achieved sustainable engagement from users and developers. Notably, Cardano has only 49 developers and a total locked value of $348 million. In comparison, Solana has 232 decentralized applications, with a total locked value exceeding $20 billion. Additionally, many of these decentralized applications based on Cardano are only seeing very minimal user activity.
The price of Cardano is likely to rise sustainably once its ecosystem attracts more developers and user activity.
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