Cardano ADA Soars 12% on DeFi Launch and Scalability Upgrade Teaser
Cardano's native token, ADA, surged 12% to reach $0.27, marking its highest level in five months. This rally occurred independently of a stagnant broader market, where Bitcoin and Ethereum showed little movement. The surge began with the launch of a DeFi platform and gained momentum after a public statement from Cardano's founder, Charles Hoskinson.
Hoskinson shared a 15-minute ADA/USDT chart showing a price jump from $0.244 to $0.264. Alongside the chart, he posted the hashtag #LeiosIsComing, sparking anticipation for the network's upcoming scalability upgrade. The Linear Leios technology, part of specification CIP-164, aims to significantly boost the blockchain's throughput. The existing Ouroboros Praos chain will maintain security, while larger endorser blocks verified by stake pools will process transactions in batches.
The initial price boost was driven by the October 1 launch of RealFi, a platform for tokenizing real-world assets, and the integration of the USDr stablecoin into Lace, Liqwid, and SundaeSwap. These developments created a bullish Golden Cross signal, where the 50-day moving average crossed above the 200-day moving average, and the daily momentum index reached 68.69. However, the rally is largely narrative-driven, as trading volumes on Cardano's decentralized exchanges have not increased proportionally to the price rise.
The long-term trend could face challenges, as the Leios integration is scheduled for late 2026 as part of the Dijkstra hard fork. This upgrade will require stake pool operators to register their keys manually, and the network's throughput will increase gradually. The nearest price resistance for ADA remains at $0.28.