Cardano may be gearing up for a trend reversal due to the launch of wrapped ADA on Ethereum by Coinbase. This event opens new horizons for users and may increase activity in the Cardano ecosystem.
Launch of cbADA on Base Platform
On June 24, Coinbase announced the launch of cbADA, a wrapped version of Cardano (ADA) available on the Base platform. Each cbADA token is backed 1:1 by ADA held in Coinbase custody, with public proof-of-reserves.
New Functionality for ADA Holders
With the launch of cbADA, ADA holders can utilize their tokens on Ethereum-based decentralized finance (DeFi) platforms like Uniswap, PancakeSwap, and Aerodrome Finance. This functionality is not available natively on Cardano, significantly increasing the utility of ADA in the broader crypto market.
Cardano's Prospects and Price Analysis
Currently, ADA is trading at $0.571, down 2% over the last day and almost 24% over the last month. Open interest in derivatives has decreased, typically indicating reduced speculative positioning. While indicators show signs of improvement, such as a rising relative strength index, ADA remains below both its 50- and 200-day moving averages. If cbADA gains traction and the NIGHT airdrop boosts activity, ADA could test resistance levels of $0.60–$0.62.
The launch of cbADA and the upcoming NIGHT token airdrop could be crucial catalysts for Cardano's growth. Despite the current downward trend, increased activity in the ecosystem offers hope for a potential trend reversal.
