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- VC firm founder foresees a significant rally in alternative coins, particularly Cardano (ADA), in the near future, amid Coinbase-SEC legal dispute.
- While ADA has shown resilience with its low-risk features and decentralized model, challenges in the DeFi sector, including declining TVL and DEX volumes, indicate the need for a strategic approach.
Dan Gambardello, the founder of Crypto Capital Venture, anticipates a significant rally in alternative coins in the near future. His optimism is rooted in the potential favorable outcome for Coinbase in its legal dispute with the United States Securities and Exchange Commission (SEC).
Last summer, the SEC filed a lawsuit against Coinbase, alleging violations of several laws and the offering of trading services with purportedly unregistered securities, including Solana (SOL), Cardano (ADA), Polygon (MATIC), and others.
The highly anticipated court hearing, dubbed “crypto’s biggest deal” by Gambardello, is slated for January 17, 2024. This legal battle will feature oral arguments regarding Coinbase’s motion to dismiss the charges.
Gambardello drew attention to the remarkable surge in XRP’s price and nearly doubled market capitalization last summer when Judge Analisa Torres ruled that Ripple’s secondary sale of XRP did not constitute an offer of investment contracts. Drawing parallels, he speculated that Cardano’s ADA could experience similar gains if Coinbase emerges victorious in its legal case. He added:
“I’m using the XRP move to give a sense – we’re back above a dollar, or we’re right around a dollar. We are in such a good time for this case to finally get resolved.”
The Cardano Price Action
Cardano’s native cryptocurrency ADA has come under strong selling pressure dropping by more than 11% over the last month. As of press time, the ADA price is down 6.34% trading at $0.5232 with a market cap of $18.5 billion.
During the last year’s bull run of 2023, the Cardano (ADA) price ended on a positive 50% rally. In 2024, Cardano emerges as a compelling choice for generating passive crypto income, characterized by its emphasis on low-risk features. The protocol, subject to rigorous peer review, places a premium on stability, security, and decentralization, establishing resilience against manipulation.
Notably, only 10% of the total ADA supply is under the control of founding entities, contributing to one of the most widely distributed networks in the crypto sphere. This extensive token distribution and a decentralized staking model fortify the platform against potential attacks.
Beyond its robust security measures, Cardano is experiencing rapid advancements in scalability and functionality. The blockchain facilitates a vibrant ecosystem encompassing diverse decentralized applications (dApps) in sectors such as DeFi, NFTs, and more. A multitude of ecosystem tokens and dApps have already found a place within the Cardano network.
Further propelling its growth, Cardano’s support for multiple programming languages broadens its appeal to a diverse developer community. With programmable token scarcity and substantial organic adoption, Cardano positions itself as a leading smart contract platform in 2024.
Cardano (ADA) grapples with challenges in the DeFi sector, marked by declining TVL and DEX volumes. Meanwhile, its NFT sector remains stable, with daily transaction volumes around $120,000, driven by collections like OMEN and Ape Society. Addressing DeFi challenges may require a strategic approach for Cardano’s future prospects.
