Recent shifts in U.S. crypto policy, announced by former President Donald Trump, significantly affected Cardano (ADA)'s market valuation.
Trump's Statements Impact on ADA Market
On March 2, 2025, Donald Trump announced the inclusion of ADA in the U.S. crypto reserve, leading to a 60% price rally to $1.14. However, the subsequent clarification led to a sell-off, dropping the price to $0.73, thus reducing the market cap from $41.7 billion to $26.7 billion.
U.S. Government's Stance on ADA
The U.S. government clarified that ADA would be relegated to a no-buy stockpile, reducing investor interest. Arkham data estimates government holdings of ADA at less than $1 million.
Community Reaction and Hoskinson's Response
Charles Hoskinson, founder of Cardano, has been politically active but was not invited to the White House crypto summit despite his efforts and connections with Trump's allies. He has shifted focus in his posts to discussing crypto markets and Cardano's development post-changes.
Recent weeks have shown the vulnerability of crypto markets to political decisions. As a result, Cardano's prices were hit, and the asset's significance in reserves remains minimal.
