Cardano Jumps 18% on ETF Filing and Network Upgrade Optimism

Cardano is showing impressive performance, rising 18% in a day and reaching $1.01, its first close above the $1 mark in months. ADA’s trading volume rose by almost 92%, while its market cap reached $35.47 billion, indicating a renewed interest from investors.

This rally comes during a broader crypto market rise, with BTC reaching a new all-time high of $124K. Along with that, regulatory optimism, technological progress, and retail interest seem to be fueling it.

ETF Filing Sparks Investor Enthusiasm

A major factor behind ADA’s rally is Grayscale’s filing for a spot Cardano ETF in Delaware, announced on August 12. The approach mirrors the one the firm used for its Bitcoin product, which attracted billions after SEC approval in 2024. Traders are already speculating that ADA could benefit from a similar institutional boost if the SEC approves the fund.

This move shows growing interest in giving traditional investors regulated access to top cryptocurrencies. Historically, ETF announcements have triggered quick price jumps as both retail and institutional buyers anticipate new inflows. For Cardano, this could signal a step toward wider adoption.

Investors are closely monitoring the market reaction. Social media chatter and Reddit discussions indicate that many retail participants are positioning themselves ahead of possible SEC approval, creating momentum that supports the price increase.

Even skeptics acknowledge that while ETF filings do not ensure approval, they often serve as a psychological driver, showing confidence from established players in the asset’s long-term potential.

Network Improvements Fuel Rally

Cardano’s development roadmap is also adding to the positive sentiment. The community recently approved a 96 million ADA budget, equivalent to $71 million, to fund network improvements. Key initiatives include Hydra, a Layer-2 scaling solution, and Ouroboros Leios, a consensus update aimed at speeding up transaction finality.

Hydra is designed to increase throughput from roughly 250 transactions per second to as many as one million, tackling long-standing scalability concerns. At the same time, Ouroboros Leios could accelerate block confirmations, enhancing Cardano’s appeal for decentralized applications.

These updates show the strength of Cardano’s on-chain governance. A large community vote highlights the role stakeholders play in resource allocation, giving confidence to investors who value decentralized decision-making. Past network upgrades have sometimes led to price changes, and although historical trends do not guarantee results, technical improvements combined with positive sentiment could support growth.

Retail Activity and Price Moves

Retail enthusiasm is helping drive ADA higher. The “Glacier Drop” airdrop tied to Cardano’s privacy-focused Midnight sidechain has sparked renewed buying, as participants try to claim early allocations. Smaller, community-led events like this often amplify broader market trends.

Technically, ADA recently broke above $0.91, sparking a 15% intraday rally. Indicators are mixed: the seven-day RSI sits at 77.23, signaling overbought conditions, while MACD shows a bullish crossover, suggesting further gains may be possible. Traders are watching Fibonacci extension levels between $1.08 and $1.17, though volatility remains a concern.

Profit-taking could appear near $1.20 if the rally continues. Maintaining support above $1.02 will be important for confirming trend strength. Recent liquidations highlight how quickly market sentiment can shift, especially when retail traders dominate activity.

What to Expect from ADA?

Cardano has grown recently due to regulatory optimism, new technology, and interest from retail investors. BTC's rally helped at first, but ADA’s ecosystem changes are driving a more stable trend

Although volatility is still present, momentum above $1 shows that investors are attentive to Cardano’s growth potential. Maintaining support at key levels will be important, yet the current surge reflects renewed confidence in ADA’s long-term outlook.