Altcoins maintain their operations through management treasuries, and having a strong treasury is crucial. Grant programs, funding for permanent developers, and many other expenses are covered by the treasury reserves of altcoins. According to recent data, the treasury of a popular altcoin has reached a full $720 million.
Cardano (ADA)
Cardano‘s Treasury holds more than 4% of the circulating supply, amounting to 1.5 billion ADA Coins. Although currently valued at approximately $720 million, this amount could quickly increase or decrease due to price fluctuations. This balance, set aside for ecosystem incentives and support, recently exceeded $1 billion.
Dan Gambadello from Crypto Capital Venture describes this situation as “the main pillar of a self-sustaining ecosystem.”
“This decentralized structure means that decisions are made by ADA holders, enhancing democratic governance and decentralization.”
The primary reason for the growth in the treasury is network activity. A portion of transaction fees and block rewards flow into it, and the Cardano community conducts votes to fund suitable projects using the treasury balance.
The issue is that despite having smart contract capabilities for a long time, we have not seen enough applications on the Cardano network that attract a massive number of users. One of the most talked-about initiatives was the network’s native stablecoin DJED, but it has not been successful in maintaining its peg or achieving sufficient market size. Although DJED has the potential to directly affect prices due to its compatibility with ADA Coin, it has not delivered as expected.
ADA Coin Price Prediction
On the technical front, Ali Martinez focuses on the historical performance of ADA Coin. In the current environment, based on historical data, this popular altcoin could enter a strong recovery phase. Of course, historical data does not predict the future, but Ali Martinez said;
“When Cardano’s MVRV Ratio last dropped below -22%, ADA’s price increased by over 75%. With the ADA MVRV Ratio potentially dropping below -22% again, we could see another impressive recovery.”
Hours have passed since the halving, and many cryptocurrencies are continuing into Sunday with gains exceeding 5%. BTC has been maintaining $64,500 for hours.
