Breakthrough from Cardano: ETF, Bitcoin, stablecoin and Midnight will help ADA explode

Famous analyst Dan Gambardello recently made important remarks about the potential integration of Cardano with Bitcoin, with potential proposals for developing treasury and ETF funds. According to him, this combination could open up significant opportunities for institutional investors while maintaining the long term growth outlook of ADA in the context of the volatile crypto market.

The approval rate for Cardano ETF rises sharply

One of the notable points in Gambardello's analyses is the strong increase in the approval rate for the Cardano ETF. This approval rate has risen from 41% on June 8 to 70% currently, with predictions that the approval likelihood could reach 78%. Bloomberg even projected that the approval probability for the ADA ETF could reach 90% by 2025, alongside leading cryptocurrencies like DOGE, DOT, and AVAX.

Some altcoins are currently undergoing the ETF registration process and have a very positive approval rate this year. Among them, Litecoin, Solana, and XRP are predicted to have a probability of approval of up to 95%. In particular, Sui and TRX have also started to appear on the list of potential candidates for ETF products.

Most ETF approvals will start to take effect from Q3 and Q4 of 2025, opening up opportunities for institutional capital inflow, attracting new investors, and enhancing the legitimacy of accepted cryptocurrencies. Gambardello pointed out that this trend will be similar to the strong growth of Bitcoin after the BTC ETF was approved, when institutional capital flowed into the crypto market. The analyst emphasized:

"These steps play a crucial role in the current overall picture."

Recent events, including the Senate passing legislation on stablecoins, the President's support for digital assets as part of the future, and the meeting between JPMorgan and DTCC with task forces on cryptocurrency, all reflect a strong shift in perspective and policy towards the crypto market.

Cardano Treasury Proposal: Integration of Bitcoin and Stablecoin

One of the groundbreaking strategies proposed by Gambardello is the integration of Cardano into Bitcoin's DeFi ecosystem through a treasury initiative. He argued that converting a portion of the ADA treasury ( amounting to about 100 million USD ) into Bitcoin and stablecoins could generate a significant income stream. This not only helps Cardano attract attention from the Bitcoin community but also opens up profit opportunities from DeFi tools in a safer environment.

According to Gambardello's plan, the treasury will invest in stablecoins and Bitcoin in a balanced manner, then generate profits to reinvest in ADA or donate back to the treasury. This could attract Bitcoin investors and those looking to participate in the DeFi market while still seeking the security that Cardano provides. With Cardano's robust security infrastructure, this strategy could make a significant difference compared to other DeFi protocols.

Gambardello believes that the initial deployment of 50 million USD in Bitcoin could help Cardano attract more investors and scale from 50 million USD up to 500 million USD and even 5 billion USD in value locked (TVL). This will be a significant step for Cardano to directly compete with other platforms like Solana in the race for TVL.

Long Term Growth Prospects for Cardano

Although the altcoin market is currently undergoing a challenging consolidation phase, Dan Gambardello maintains a bullish outlook on Cardano (ADA). He asserts that all current altcoins are under general downward pressure, and this is not a sign of ADA's individual weakness, but rather a characteristic of the overall trend in the crypto market. In this context, altcoins are facing a prolonged adjustment phase, especially when considering the total market capitalization of cryptocurrencies outside of Bitcoin and Ethereum.

Gambardello made a prediction in January, when he stated that the altcoin market would have to undergo a prolonged decline, which has become true as observed by the price drop in the following months. He compares the current situation with past consolidation phases, particularly in June 2023, August 2024, and January 2023, where the market experienced corrections before establishing new growth trends.

Analysts indicate that the price of ADA is currently still maintaining the downward trend of the bear market, but has begun to form a clear technical structure, which is the inverse head and shoulders pattern - a characteristic signal of previous recovery cycles. He believes this is a positive signal indicating that Cardano is preparing for an upcoming growth phase, although there are still consolidation phases at present.

! 1 Day ADA Price Chart | Source: Dan Gambardello/ XChe key technical report shows that the 20-week (SMA) moving average is approaching the 50-week SMA on the ADA weekly chart. History has shown that every time these two lines intersect, there is usually a reversal in the price trend. In fact, previous crossovers occurred about 56 days before the market saw price bottoms, and another crossover could lead to an 84-day sideways period before the market recovered.

! ADA Price Chart 1 Week | Source: Dan Gambardello/ XDhe important thing is that the current market environment is markedly different from previous bear market periods. After the US Federal Reserve (Fed) decided to expand its balance sheet, instead of tightening quantitatively as in previous bearish cycles, this created a differentiated monetary landscape, which could create a favorable environment for risky assets such as cryptocurrencies.

Gambardello reiterated the conditions in January 2022 when the Fed began to shrink its balance sheet and compared them with the current expansionary monetary policy. With a more accommodative monetary environment and a focus on risk assets, he believes that cryptocurrencies will benefit from these favorable conditions, and especially Cardano (ADA) will have the opportunity to break out as the market recovers.

The breakthrough of Midnight Token: New potential for Cardano

Meanwhile, one of the important factors helping Cardano strengthen its position is the launch of the Midnight tokenomics framework, introduced by Charles Hoskinson, the founder of Cardano.

The project's whitepaper clarifies the operation of NIGHT, the main utility token in the system, and DUST, a new protective resource that supports transactions within the network.

The Midnight project will distribute tokens through three main phases:

1. Glacier Drop: A free giveaway for eligible users, including users from networks like Cardano, Bitcoin, Ethereum, Solana, and other chains.
2. Scavenger Mine: This phase awards unclaimed tokens to those who contribute computing power to the network.
3. Lost-and-Found: A long open phase aimed at giving tokens to those who have not participated in previous distribution rounds.

The NIGHT token from the first two phases will be gradually unlocked over a period of 360 days from the launch of the mainnet, with a 90-day extension period for token swaps.

When it comes to block rewards, Midnight will implement a controlled halving release model governed by an on-chain reserve group. This means that early block producers will not receive rewards immediately. However, as the system stabilizes, Cardano Stake Pool Operators (SPO) will have the opportunity to earn NIGHT through a system that combines fixed grants and incentives based on the actual usage of the network.

Midnight's whitepaper not only introduces the new token, but also the launch of a completely new parallel economic system, connecting Cardano and Midnight in an unprecedented way. This creates an important turning point in the development of the Cardano ecosystem, but how it specifically affects Cardano (ADA) is still an open question.

Dan Gambardello's forecasts about the potential integration between Cardano and Bitcoin, along with the development of ETFs and the Cardano treasury, indicate a promising future for Cardano. Despite the challenges from the crypto market, Cardano maintains a positive long term outlook thanks to innovative strategies and sustainable development within its ecosystem. As institutional capital flows into the DeFi space and Cardano continues to innovate with initiatives like Midnight, ADA may be poised to achieve new milestones in 2025 and beyond.

Annie