On the cryptocurrency stage, Cardano (ADA) has been particularly eye-catching recently. Bloomberg has focused on its outstanding performance post-election and delved into the underlying driving factors.
1. Comparison of Post-Election Performance with Bitcoin
Since the U.S. elections, the cryptocurrency market has shown significant volatility and notable changes. In a report by Bloomberg China, co-host Yvonne Man commented on the post-election performance of top cryptocurrencies, focusing on Bitcoin (BTC) and Cardano. Bitcoin attracted a lot of attention during the election, with its price surging by 46%-47%, reaching a high of about $92,000 at one point. However, the performance of Cardano was even more impressive; since the beginning of November, the rise of ADA has outpaced Bitcoin, nearly doubling in price, climbing from around $0.35 on election day to a peak of $0.8466 yesterday. Although its initial growth was relatively slow, it successfully caught up and led a broader market rebound.
2. Key Factors Behind the Surge of ADA
(1) Founder Engagement with Lawmakers
Yvonne attributed the surge in ADA's price mainly to the recent active interactions between Cardano founder Charles Hoskinson and U.S. lawmakers. Since the election, Hoskinson has been extremely active in the cryptocurrency and political arenas, frequently engaging in in-depth discussions with many well-known stakeholders. This series of actions is expected to bring clearer definitions to the regulatory environment for ADA in the U.S. It is worth noting that last year, the U.S. Securities and Exchange Commission labeled it as a security, and the recent exchanges might change this situation. Earlier this week, Hoskinson revealed that he has had substantive contacts with U.S. lawmakers in advocating for a comprehensive cryptocurrency framework.
(2) Promoting Cryptocurrency-Friendly Regulations
In an interview with Bloomberg, Hoskinson reiterated that he is still in ongoing discussions with lawmakers. The core of the discussions focuses on building a cryptocurrency committee aimed at comprehensively regulating various areas of the cryptocurrency industry, from exchanges to stablecoins. He stated that his involvement is focused on advancing strategies at the administrative and legislative levels, particularly addressing the long-standing debate over whether cryptocurrencies should be classified as securities or commodities. Hoskinson mentioned the Digital Commodity Exchange Act (DCEA), which was introduced in 2022 but is still awaiting further review by the House Agriculture Committee. On the administrative side, he noted that Trump has promised to prioritize the development of cryptocurrency innovation, although he also pointed out that the elected president may face challenges in efficiently coordinating with lawmakers. Additionally, SEC Chairman Gary Gensler may be replaced by a pro-cryptocurrency chairman, which could reshape the regulatory landscape for cryptocurrencies in the U.S. Currently, Trump is considering several candidates, such as former SEC official Hester Peirce and Dan Gallagher, CLO of Robinhood. Hoskinson hopes to shape the U.S. as a leader in cryptocurrency-friendly regulation while emphasizing the need to ensure that U.S. cryptocurrency regulations align with global standards.
3. Meetings with Ripple Executives and Their Impact
In addition to close meetings with lawmakers, Hoskinson also interacted with Ripple executives Brad Garlinghouse and David Schwartz. These meetings have sparked widespread speculation about potential collaboration between Ripple and Cardano. This atmosphere of speculation may have contributed to the recent price surge of ADA to some extent. Currently, the trading price of ADA is $0.7819, experiencing a slight decline of 0.31% in the past 24 hours, but this does not affect its overall strong upward trend post-election, nor its increasingly prominent influence and attention in the cryptocurrency market. A series of developments for Cardano after the election, whether in interactions with regulators or potential collaborations with other cryptocurrency enterprises, has laid a solid foundation for its continued expansion in the cryptocurrency field, leaving investors and market observers with high expectations for its future direction.
The information provided in this article is for reference only and does not constitute any type of advice.
