Potential Impact of Securities and Exchange Commission's May 29th Decision on Cardano (ADA) Crypto Price, with Anticipation of Surpassing $1 Mark.
Cardano's ADA Token Awaits SEC Decision on ETF Approval
The U.S. Securities and Exchange Commission (SEC) has pushed back its decision on Grayscale's spot Cardano ETF application from May 29 to July 13, 2025. The final verdict is now scheduled for October 22, 2025, following a 240-day review period.
The announcement has generated a mixed response from the Cardano community, with market activity showing increased interest in the cryptocurrency. According to recent data, daily transactions on the Cardano network have climbed from under 30,000 at the beginning of May to a current level of 50,000. This surge in network usage is indicative of renewed investor interest.
Transaction volumes have also shown strength, reaching $684.6 million in a single day. Moreover, $680 million worth of ADA tokens have left exchanges, a movement typically signaling investors' intent to hold rather than sell in the near term.
Despite these signs of heightened investor sentiment and increased activity, Cardano faces challenges in ecosystem development. The network currently supports only 48 DeFi applications and holds $443 million in total value locked, with just $31 million in stablecoins circulating on the platform. These figures place Cardano behind some newer blockchain networks in terms of DeFi adoption and usage.
In spite of these issues, technical analysts remain optimistic about ADA's price prospects. If the current momentum holds, the price could retest last year's high of $1.207. A breakthrough above that level might open the path to $2, with some analysts suggesting even higher targets of $3 to $4.50 based on historical patterns.
The May 29 SEC decision was expected to serve as a major catalyst for ADA's next move. An approval from the SEC could open the door to institutional investment and potentially send ADA above the $0.84 resistance level, potentially initiating a fresh rally. However, the delay in the decision has led to a decrease in ADA's price. Recently, ADA dipped about 4% following news of the delay, reflecting growing uncertainty and fear among traders.
The next 24 hours will be crucial for Cardano as traders await the SEC's verdict on the ETF application, which could set the tone for ADA's price action in the coming months.
The delay in the SEC's decision on Grayscale's Cardano ETF application has sparked a decrease in ADA's price, with recent data indicating a 4% dip following the news. On the other hand, despite the concerns over Cardano's ecosystem development and DeFi adoption, technical analysts remain optimistic about Ethereum's sister cryptocurrency, ADA, with potential price targets of $2, $3, and even $4.50 based on historical patterns, should the current momentum hold.
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