Grayscale has increased the allocation of Cardano in its Smart Contract Platform Fund to 18.5%, indicating a potential price growth for ADA.
Cardano Becomes Third Largest Holding in Grayscale Fund
Grayscale has made adjustments to its Smart Contract Platform Fund's portfolio, raising Cardano's weight to 18.5%. As a result, ADA now ranks as the third largest holding after Ethereum (ETH) and Solana (SOL).
Consequently, Grayscale sold Polkadot (DOT) and existing fund components proportional to their respective weightings, while purchasing Hedera (HBAR) with the cash proceeds. This indicates that Grayscale has likely turned bullish on Cardano amid recent new projects and technical chart strength.
Cardano-related Projects and Upgrades
The Cardano community is looking forward to numerous proposed projects and upgrades that could enhance on-chain activity. Notably, the Ouroboros Leios, Hydra, and Midnight upgrades are seen as strengthening Cardano's full-stack blockchain offering.
The Ouroboros Leios upgrade aims to scale up transaction processing speed and efficiency on the Cardano network. Meanwhile, the Hydra Layer 2 upgrade will enhance high-speed throughput and low-latency transactions.
Cardano founder Charles Hoskinson also commended the Reeve project, aimed at integrating traditional accounting systems with blockchain technology.
Cardano Price Begins Major Rally
Cardano price has hit the $0.60 level again. The price surged nearly 7% in the last week, trading at $0.596 at the time of writing.
The 24-hour low and high were $0.579 and $0.598, respectively. However, trading volume has decreased by 11% in the last 24 hours, yet analysts note bullish signals. Recent analysis has identified a 'golden cross' moving average, indicating potential for continued price increases.
Overall sentiment among derivatives traders remains bullish, as evidenced by a significant uptick in open interest for ADA futures.
The increase in Cardano's weight in Grayscale's fund, alongside new projects and positive technical signals, suggests growing interest in ADA and the potential for further price increases.
