## Cardano (ADA) Kicks Off the Week with a Dip, Yet Analysts Stay Optimistic
Cardano (ADA) started the week on a downbeat note, experiencing a nearly 10% decline in less than 24 hours as the broader cryptocurrency market faced challenges due to concerns over a $1.5 billion Bybit hack and tepid on-chain activity. Despite this setback, analysts continue to express optimism about ADA’s long-term prospects. On Sunday, well-known crypto analyst Dan Gambardello reiterated his faith in ADA, labeling a $10 price target as “very realistic.” “The path to $10 is very realistic when you look at this macro chart on Cardano and the macro cycles of crypto,” he remarked.
Gambardello highlighted Cardano’s DeFi ecosystem as a significant opportunity, characterizing the current phase as a “ground floor” for investors. He also posited that ADA is among the most strategically positioned altcoins to achieve a trillion-dollar market cap alongside Bitcoin, Ethereum, and XRP. By comparing ADA’s current price movements to previous cycles, he suggested that historical patterns indicate a potential rally is on the horizon. “I don’t know if the move will happen now, in a month, or two, but a move like that is what we see not just with ADA, but with other cryptos as well,” he added.
Furthermore, Gambardello pointed out that Cardano’s market cap is still significantly lower than Ethereum’s peak from the last cycle, reinforcing his belief in a price range of $5 to $10. “A $350 billion market cap is still a lot less than what Ethereum achieved last cycle. It’s becoming clear to the industry that Cardano is fundamentally sounder, more secure, and more decentralized than Ethereum,” he stated.
Interestingly, Gambardello’s analysis aligns with insights from Cardano founder Charles Hoskinson, who discussed how the network could bolster Bitcoin’s DeFi sector, potentially unlocking $2 trillion in assets. During an appearance on the Mr. M Podcast with early Bitcoin advocate Davinci Jeremie, Hoskinson emphasized Bitcoin’s DeFi potential. “There’s nearly $2 trillion in Bitcoin assets that could be activated within DeFi,” he noted. He further explained that while Bitcoin holds substantial value, it currently lacks total value locked (TVL) in DeFi. Cardano’s Babel fees, which allow users to pay transaction costs with native assets, could help bridge this gap. Wrapped Bitcoin on Cardano could facilitate fee settlements in BTC rather than ADA, enhancing the user experience.
Drawing a parallel to international credit card transactions, Hoskinson identified Midnight, a privacy-focused sidechain, as crucial to Cardano’s multichain expansion. “With Midnight and Bitcoin DeFi launching this year, we anticipate more projects integrating with Cardano,” he added. Looking forward, he stressed the importance of expanding Cardano’s active user base, transaction volume, and regulatory trust. As the network ventures into Bitcoin DeFi, he mentioned that major players like MetaMask might consider integration.
In addition to these ambitious forecasts, investors are also keeping a close eye on the increasing interest in spot ETF filings, with firms like Grayscale having submitted their documents to the SEC earlier this month.
