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Michael Davis
Author
Michael Davis
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Cardano (ADA) held up well on Monday despite a sharp drop in the prices of other major cryptos like Bitcoin (BTC), with the crypto holding firmly above its 200DMA, a sign that bulls are still putting up a solid fight.
The Cardano price was last just under $0.68, just above its 200DMA at $0.66, down around 50% from its December highs in the $1.3250 area.
If the 200DMA holds as a strong area of support, which is very possible, Cardano could soon snap its downtrend of the last three months and rally over 70% back to its recent highs.
Near-term catalysts that could trigger a 70% run higher include a meeting between Cardano founder Charles Hoskinson and an important member of the Trump administration later this month (potentially Elon Musk).
This meeting could trigger hopes that Cardano might be selected by the US government as the blockchain to move US government transactions onto, amid D.O.G.E.’s ongoing push for transparency.
Cardano Set to Outperform in 2025? Hoskinson Criticizes Ethereum and Solana
Hype that the US government might move its financial activities onto the Cardano blockchain could be a major, and still a completely underpriced, catalyst for ADA in 2025.
But this is unlikely. A more important long-term catalyst for Cardano in the long-run could be its push to become the go-to Bitcoin DeFi side chain.
Hoskinson outlined this vision in a recent podcast interview.
In the same interview, he hit out against Ethereum for allowing so much activity to move to layer-2 networks, and said that Solana would not be able survive, particularly as the amount of data being moved within its ecosystem surges.
Notably, the Solana network faced a lot of issues in wake of the issuance of the Trump coin in January.
Assuming Bitcoin does continue on its path to becoming the most important global reserve and collateral asset, Cardano could see massive growth in the years ahead as its main DeFi side-chain.
ADA Alternative to Consider – Solaxy (SOLX)
However, a lot of this could be wishful thinking for Cardano, which has struggled to garner much real world adoption when compared to Ethereum and Solana, or to prove itself as a viable Bitcoin side chain.
Case in point – trading volumes on Cardano pale in comparison to those on Solana, while the total value locked of crypto in smart contracts on the blockchain pales in comparison to that on Ethereum.
And Solana’s data problem could soon be solved, thanks to a new project called Solaxy (SOLX).
Solaxy is an innovative Layer-2 scaling solution for the Solana blockchain, designed to tackle its notorious congestion issues.
By using roll-up architecture, Solaxy promises faster, cheaper, and more reliable transactions, enhancing Solana’s appeal for DeFi, meme coins, and dApps.
Its native token, SOLX, powers this ecosystem and bridges Solana with Ethereum, tapping into deep liquidity while maintaining high speed.
Launched via a presale that’s already raised over $23 million, SOLX shows strong investor enthusiasm.
Analysts predict a 10x surge in 2025 due to its first-mover advantage as Solana’s pioneering Layer-2, potential exchange listings, and staking rewards offering up to 176% APY.
With Solana’s ecosystem booming and a possible bull run looming, SOLX could ride the wave of adoption and market hype. However, crypto’s volatility means thorough research is essential before investing.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
