Cardano Recovery Gains Momentum as DeFi Activity Picks Up

Cardano's (ADA) recovery is gaining momentum as DeFi activity on its network picks up, but the institutional landscape remains uncertain following Grayscale's decision to withdraw its ADA ETF filing. Rising DEX volumes and improving liquidity have contributed to the uptick in trading activity.

The Cardano ecosystem has seen a noticeable increase in activity, with DEX trading volume over the past seven days reaching $17.94 million, up 53.5% week-over-week. Stablecoin market capitalization on the network increased by 5.3% to approximately $67.6 million.

However, the institutional backdrop has weakened, as Grayscale filed a request with the SEC to withdraw its ADA ETF filing on August 7. The decision to discontinue registration rather than an SEC rejection leaves the fundamental picture mixed.

The price of Cardano remains above $0.194, maintaining short-term bullish momentum and targeting the $0.221-$0.232 zone. A break below $0.194 could weaken the structure and lead to a decline towards $0.181.