Cardano proponents are buzzing in the wake of US President Donald Trump’s announcement to include the cryptocurrency in a proposed strategic crypto reserve alongside Bitcoin, Ethereum, XRP ($2.61), and Solana.
Whales rushed to increase their holdings, buying $134 million worth of the cryptocurrency after the announcement.
“We earned this on the fact that we showed up on the bad days, and there will be more to come, and we will win,” Cardano founder Charles Hoskinson said in a Sunday livestream.
Cardano’s price surged 78% on Monday to reach a four-month high of $1.14 before retracing to $0.97 as of reporting time.
The total value of the crypto market jumped 11% overnight to $3.2 trillion.
Crypto summit
Whether Cardano and the market as a whole can maintain the momentum depends on what Trump will announce at the first White House crypto summit on Friday, analysts say.
“Any delays, lack of clarity, or perceived obstacles to the reserve’s implementation could lead to a sell-off, particularly against the backdrop of broader market uncertainty tied to Federal Reserve policy shifts,” Jacob Joseph, research specialist at research firm CoinDesk Data, told DL News.
The crypto market has shaved about $700 billion off its total value since its December high. Several factors drove the drop, including threats of tariffs, memecoin scandals, and the massive $ 1.5 billion Bybit hack.
Market watchers also warn that Trump’s national crypto stockpile is not a done deal.
“Until he gets Congress and Senate approval for the strategic reserve bill, there is no reason to believe that currencies like Cardano, Solana and XRP would be included,” Zach Burks, CEO and co-founder of NFT ($0.00) marketplace Mintable, told DL News.
Burks said Trump plans to use the announcement as a negotiating tactic to get some form of crypto reserve approved on Capitol Hill.
“He included these tokens, knowing that ADA ($0.97) and XRP are completely worthless for the US and will not be included in any form of strategic reserve,” Burks said. “Bitcoin is the only one that makes sense to hold in a strategic reserve.”
Several crypto stakeholders also criticised the inclusion of altcoins in the proposed crypto reserve.
Some, like venture capitalist Naval Ravikant, argued that it would amount to the government using US taxpayer funds to prop up altcoins issued by private companies.
“When you include altcoins whose use case is too nascent to be deemed ‘nationally strategic,’ you risk the assumption of inside dealing,” Jeff Park, head of alpha strategies at crypto investment fund Bitwise, posted on X.
Still, analysts said the announcement halted last week’s crypto crash and injected fresh enthusiasm into the market, which has largely been faltering this year.
Ed Hindi, chief investment officer at investment manager Tyr Capital, said he expects Trump’s announcement to kickstart a rally.
“This is especially good news for Ethereum and other altcoins as the market was pricing in a Bitcoin strategic reserve, and it seems that the US is planning to hold a diversified portfolio of coins,” Hindi said.
“Our eyes are on the White House this Friday.”
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? please contact him at [email protected]. creator solana token
