Cardano rallies ahead of major summit

March 05, 2025

Reading time: 5 minutes

Cardano surges as White House Crypto Summit sparks optimism

Key points:

  • ADA price jumped 30% in two days, trading at $0.93 ahead of the first-ever White House Crypto Summit on March 7.

  • Total Value Locked (TVL) on Cardano’s DeFi ecosystem soared 52%, reflecting increased investor confidence.

  • Technical indicators suggest a potential breakout, with ADA eyeing the $1.20 resistance level.

News - Cardano’s (ADA) price has seen a strong rebound, surging nearly 30% from its recent lows as investors anticipate key regulatory discussions at the White House Crypto Summit on March 7. The summit, hosted by President Donald Trump, will bring together industry leaders to discuss crypto policy, stablecoin oversight, and the role of digital assets in the U.S. financial system.

Adding to the bullish sentiment, Cardano was named in Trump’s proposed U.S. Strategic Crypto Reserve, boosting its credibility in the eyes of institutional investors. Markets tend to rally ahead of major regulatory developments, and ADA’s price action reflects traders positioning themselves ahead of potential bullish announcements.

DeFi growth fuels confidence - Cardano’s DeFi ecosystem has also gained traction, with Total Value Locked (TVL) rising from $268 million to $408 million in just six days. This surge was driven by:

  • Indigo (synthetics protocol) – up 32%

  • Liqwid (lending) – up 30%

  • MinSwap (DEX) – up 29%

On-chain data also indicates an increase in daily transactions and open interest, reflecting growing market participation. However, funding rates remain negative, suggesting traders are still skeptical about ADA’s sustainability at higher levels.

Can ADA hold its gains? - ADA recently confirmed a bull flag breakout, a technical pattern signaling potential upside. The altcoin is now testing the $1.20 resistance level, and a high-volume move above this mark could accelerate gains toward $3.20—a 238% increase from current levels.

The Relative Strength Index (RSI) sits at 58, indicating room for further upside before entering overbought conditions. However, a failure to hold above $0.80 could invalidate the bullish setup, leading to a period of consolidation.

Market analyst Kwantxbt noted:

"Volume surge and tight consolidation suggest the potential for a run up into the $1.05-1.10 range. Support at $0.92.”

As the summit nears, traders will closely watch ADA’s price movements, with regulatory clarity potentially serving as the next major catalyst.

AAVE rises 21% as Aave DAO unveils major tokenomics overhaul

Key points:

  • AAVE price surged 21% after Aave DAO proposed a major tokenomics revamp featuring buybacks and staking incentives.

  • The Anti-GHO mechanism will provide borrowing discounts and staking rewards, backed by $6 million in annual revenue.

News - Aave DAO introduced a governance proposal aimed at reshaping AAVE’s tokenomics to boost token value and user incentives. The plan, which follows a TEMP CHECK approved in August 2024, proposes multiple changes, including profit-sharing mechanisms, a buyback program, and a self-protection system. The proposal triggered a 21% surge in AAVE’s price, outperforming the broader market, which saw a 3.5% increase.

Aave’s strategic overhaul: Buybacks, staking, and rewards - The new "Buy and Distribute" initiative will allocate $1 million per week to purchase AAVE tokens from the open market. This could reduce the circulating supply, creating scarcity and long-term price appreciation. The buybacks will last six months and may be expanded based on Aave’s financial performance.

Additionally, Anti-GHO, a non-tradable token, will serve two key purposes:

  • Burned to offset GHO borrowing costs, functioning as a repayment discount.

  • Converted into StkGHO for extra staking rewards, providing users with additional incentives.

Aave plans to fund Anti-GHO from 50% of GHO’s $12 million annual revenue, directing 80% to AAVE stakers and 20% to StkBPT holders.

Security and liquidity enhancements - Aave is also launching Umbrella, a self-protection system designed to safeguard users against bad debt in case of market crashes. By allocating DAO revenue to incentivize liquidity across multiple chains, Umbrella will initially support wETH, USDC, USDT, and GHO, with plans for further expansion.

Market impact and outlook - AAVE’s rally has sparked notable on-chain movements. Santiment data shows a 114% spike in exchange inflows, indicating potential selling pressure from long-term holders. If profit-taking continues, AAVE may retest key support at $199.80. However, sustained demand could push the price toward $238 in the short term.

The proposal is now open for community feedback. If approved via a Snapshot vote, the Aave Improvement Proposal (AIP) will initiate implementation in the coming weeks.

Ethereum’s Pectra upgrade nears mainnet, but delays loom

Key points:

  • Ethereum’s Pectra upgrade was successfully deployed on the Sepolia testnet, marking a critical milestone, but unresolved issues from the Holesky testnet may delay the mainnet launch.

  • The upgrade introduces major improvements, including higher validator staking limits and smart contract functionality for wallets, but developers remain cautious about moving forward too quickly.

News - Ethereum’s long-anticipated Pectra upgrade has gone live on the Sepolia testnet, bringing the network one step closer to its next major mainnet update. The upgrade, which merges the previously planned Prague and Electra updates, aims to enhance staking, scalability, and transaction efficiency.

However, concerns persist about a potential delay in the mainnet rollout. While Sepolia’s implementation was successful, Ethereum’s Holesky testnet failed to finalize the upgrade due to issues related to validator synchronization. Developers are now investigating correlation penalties and validator balance drains before confirming a mainnet launch date.

Ethereum’s core development team is set to discuss the mainnet timeline during an All Core Developers meeting on March 6. While initial expectations pointed to an April 2025 launch, the setbacks on Holesky could push the deployment further.

Pectra’s key upgrades - One of the most significant improvements in Pectra is EIP-7251, which increases validator staking limits from 32 ETH to 2,048 ETH. This change aims to streamline staking operations but has also sparked concerns about centralization risks, as it may favor large-scale validators over smaller participants.

Another game-changing addition is EIP-7702, enabling smart contract functionalities for wallets. This upgrade enhances user experience by allowing transaction fees to be paid with stablecoins and enabling automatic subscription payments—a move that brings Ethereum closer to mainstream usability.

Additionally, scalability solutions like PeerDAS and Verkle Trees are set to optimize Layer-2 (L2) efficiency and reduce transaction costs, further positioning Ethereum as a competitive smart contract platform amid growing competition from Solana and other high-speed blockchains.

What’s next? - With Pectra’s launch on Sepolia, all eyes are now on Ethereum’s mainnet upgrade timeline. Developers remain optimistic about resolving the Holesky testnet issues, but delays could push the final rollout beyond April.

Meanwhile, institutional interest in staked Ethereum ETFs is growing, with analysts expecting Pectra to facilitate easier staking mechanisms that could drive further adoption. Ethereum’s next major upgrade, Fusaka, is already in the pipeline, promising additional scalability enhancements.

For now, the Ethereum community is eagerly awaiting the March 6 developer call, where the final decision on Pectra’s mainnet activation could be revealed.

Bitcoin miners struggle as market cap plunges 22% in February

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Key points:

  • The combined market capitalization of 14 major U.S. Bitcoin miners dropped 22% in February, shedding $6 billion, according to JPMorgan.

  • Bitcoin mining revenue declined 5% month-over-month, with miners earning $54,300 per EH/s on average.

  • Macroeconomic concerns, including Trump’s trade war and AI competition, have added further pressure on miners.

News: Bitcoin miners hit hard by price decline - The U.S. Bitcoin mining industry suffered significant losses in February, as the market capitalization of top public miners dropped by 22%, reflecting the broader downturn in Bitcoin’s price.

JPMorgan’s latest report attributes the decline to worsening mining profitability, a 5% drop in revenue, and increased competition in the sector. Miners earned $54,300 per EH/s in daily block rewards, a decrease from the previous month, as Bitcoin’s price fell nearly 10% over the last 30 days, hitting lows of $78,940.

Marathon Digital (MARA), one of the largest U.S. Bitcoin miners, also reported a 6% decline in Bitcoin production due to increased network difficulty and February’s shorter month.

Macroeconomic challenges and AI disruptions - In addition to Bitcoin’s price volatility, miners are facing external pressures from global trade tensions and the rise of AI-driven competition.

  • Trump’s tariffs on China, Canada, and Mexico have led to broader market uncertainty, reducing investor appetite for risk assets like Bitcoin.

  • Some Bitcoin miners have pivoted to AI, repurposing their data centers for high-performance computing (HPC) workloads. However, the launch of DeepSeek AI—a Chinese language model—has raised concerns about the future demand for U.S. data centers, further impacting miner sentiment.

What’s next? - Despite the challenges, some mining companies are expanding operations. Marathon Digital is nearing completion of a new 40MW data center in Ohio, set to house over 10,000 miners.

However, with Bitcoin down nearly 20% from its January all-time high of $108,000, miners face mounting profitability concerns. If Bitcoin prices continue to decline, mining firms may need to further diversify revenue streams or scale down operations.

Did you know?

  • Launched in 2014, MazaCoin became the first cryptocurrency adopted by a Native American tribe, the Oglala Lakota Nation. Developed by Payu Harris, MazaCoin aimed to provide economic sovereignty and financial independence for the tribe by utilizing digital currency technology. While it faced challenges in widespread adoption, MazaCoin represented a pioneering effort in integrating cryptocurrency into indigenous economic systems.

  • An anonymous Bitcoin millionaire established the Pineapple Fund in 2017, donating over 5,000 BTC (worth approximately $55 million at the time) to various charities. This act demonstrated the potential for cryptocurrency wealth to contribute to philanthropic causes globally.

  • In 2018, Venezuela became the first country to launch a state-backed cryptocurrency called the Petro, purportedly backed by the nation's oil and mineral reserves. The initiative aimed to circumvent international sanctions and stabilize the country's struggling economy, though it faced significant skepticism and limited adoption.

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Top 3 coins of the day

Aave (AAVE)

Key points:

  • At press time, AAVE was trading at $223, reflecting an 8.29% increase over the last 24 hours.

  • The token surged as the Aave DAO revealed a major proposal, contributing to renewed investor optimism and a broader crypto recovery.

What you should know:

Aave experienced a significant price surge, jumping over 8% in a single day, largely driven by renewed bullish momentum across the crypto market. The latest Aave DAO proposal, which has been deemed one of the most critical in the protocol’s history, played a crucial role in boosting investor sentiment. Additionally, the overall market recovery, as highlighted in recent analyses, has positioned AAVE as one of the leading gainers. Technical indicators suggested strong buying pressure. The Bollinger Bands showed widening volatility, indicating an increase in price fluctuations, while the Awesome Oscillator reflected a shift in momentum towards bullish territory. Volume also spiked, reinforcing the increased demand for AAVE. Moving forward, traders should monitor the $230-$240 resistance zone as a potential barrier, while support at $200 remains crucial for maintaining the uptrend.

Chainlink (LINK)

Key points:

  • At press time, LINK was trading at $16, reflecting a 9.08% increase over the last 24 hours.

  • The price rebound was fueled by increased volume and volatility, with bullish momentum attempting to regain control after recent declines.

What you should know:

Chainlink witnessed a strong recovery, surging over 9% in the past day. The price increase was accompanied by a rise in trading volume, signaling renewed interest in LINK. According to recent reports, this price action aligns with heightened volatility, which could pave the way for further gains or a potential pullback depending on market sentiment. Technical indicators reinforced the recovery momentum. The Bollinger Bands showed an expansion, indicating increased price fluctuations, while the MACD suggested a potential bullish crossover. However, LINK faces resistance near the $17-$18 range, which could act as a ceiling for further price movements. Meanwhile, the $14 level remains a crucial support zone to monitor in case of any pullbacks.

Toncoin (TON)

Key points:

  • At press time, TON was trading at $3.03, reflecting a 2.82% decline over the last 24 hours.

  • The price drop led to a new all-time low of $2.82 before rebounding slightly, with technical indicators signaling potential bearish continuation.

What you should know:

Toncoin continued its downward spiral, registering another daily decline as selling pressure intensified. The price touched a historic low of $2.82, sparking concerns over further downside. The 9-day SMA acted as a dynamic resistance, restricting any significant upside movement. Moreover, the RSI hovered near the oversold region at 30.54, indicating weak buying momentum, while the Chaikin Money Flow (CMF) remained barely above the neutral line, suggesting mild accumulation but no strong reversal signals. Despite the current weakness, a relief rally could occur if TON manages to reclaim the $3.30-$3.50 resistance zone, while failure to hold above $2.80 might trigger further declines. The overall sentiment remains bearish unless a surge in volume and buying activity signals a potential trend reversal.

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