Cardano’s ADA saw increased institutional allocation in a Grayscale fund, signaling growing confidence in its ecosystem. Despite this vote of confidence, the token’s price remains under significant selling pressure, trading near $0.27 as it struggles below key moving averages. Concurrently, a major interoperability integration via LayerZero could expand Cardano’s use in decentralized finance by connecting it to over 80 other blockchains.
Cardano’s allocation in Grayscale’s Smart Contract Fund increased from 20.12% to 20.34%, making ADA the fund’s third-largest component. This shift highlights growing institutional interest in Cardano’s smart contract platform.
The cryptocurrency’s market performance, however, shows sustained downward pressure. According to data from CoinMarketCap, ADA fell 4.01% over 24 hours and was trading at $0.2696 at the time of writing.
ADA’s price is trading below its key 20-day simple moving average of $0.2744 and far under its longer-term averages. As observed on TradingView, the dominant trend remains negative with potential support near $0.2509.
The network achieved a major interoperability milestone by connecting with over 80 blockchains through LayerZero integration. This development enables the transfer of liquidity and interaction with broader decentralized finance ecosystems.
This integration facilitates seamless asset, value, and data transfer between connected blockchains. Analysts believe this development could encourage greater adoption and development activity within the Cardano ecosystem.
Institutional precedent with ADA may influence broader market sentiment for other altcoins. Cardano’s expanded interoperability directly enhances its potential for real-world decentralized finance applications.
