As Retail Investors Exit, Institutions Accumulate Cardano, Eyeing a Second Ethereum-Like Breakout

▲ Cardano (ADA)

Cardano (ADA) has recently emerged as a new source of momentum in the market, attracting substantial capital from institutional investors. After a prolonged period of sideways movement, investors are closely watching whether Cardano will signal the beginning of a full-fledged rebound fueled by large-scale capital inflows.

According to the latest weekly report from digital asset investment firm CoinShares, Cardano-based investment products recorded significant new inflows over the past week. This stands in contrast to major assets such as Bitcoin and Ethereum, which experienced temporary outflows. The trend is interpreted as evidence that institutions are once again recognizing Cardano’s technical maturity and ecosystem expansion potential.

Cardano is currently trading around $0.28, appearing to have established a price floor. Although still far below its all-time high of $3.10 recorded in 2021, it has risen more than 7% since the beginning of the year, demonstrating resilience that outpaces the broader market average. Strong liquidity catalysts are also on the horizon, including the announcement of LayerZero integration and the upcoming launch of USDCx, a new USDC-based stablecoin by Circle.

A key reason institutions are paying attention to Cardano lies in its research-driven academic approach and stable governance structure. Recently, Cardano strengthened its on-chain governance and treasury system through the Version 11 upgrade, marking the transition into the Voltaire era. Adding to this momentum are reports that the Chicago Mercantile Exchange (CME) is moving forward with plans to launch Cardano futures contracts, further solidifying its position as an institutional-grade financial asset.

Cardano is also making notable progress in the real-world asset sector. Global accounting firm Grant Thornton has recently piloted an on-chain financial audit system built on the Cardano blockchain, demonstrating its practical viability as an enterprise blockchain solution. Industry observers believe that the expansion of such real-world use cases could drive fundamental value growth beyond mere speculative demand.

However, optimism is not universal. Market experts advise that for Cardano to enter a sustained upward rally, it must break through the strong resistance level around $0.35 with significant trading volume. Additionally, its relatively slower ecosystem growth compared to competing networks such as Solana remains a challenge that needs to be addressed.

*Disclaimer: This article is provided for investment reference only, and we are not responsible for any investment losses resulting from it. The content should be interpreted solely for informational purposes.*