Cardano (ADA) Soars 7.76% as $71M Fund Gains Community Approval

Cardano ADA is holding steady at around $0.7996 after a strong rally earlier this week. The price action reflects a combination of technical momentum and fundamental catalysts, including the community’s approval of a $71 million development fund and an influx of new users from the Glacier Drop token distribution. 

While ADA has pulled back slightly from its recent high of $0.8345, market sentiment remains constructive.

Why the $71 Million Development Fund Matters

On August 6, 2025, Cardano’s on-chain governance system approved a $71 million development fund, equal to 96 million ADA, for ecosystem growth. This allocation will support infrastructure enhancements, developer incentives, and interoperability initiatives. It is one of the largest community-directed funding events in Cardano’s history, signaling maturity in its governance model.

The market responded with increased buying from both retail traders and large ADA holders. Data shows a surge in whale accumulation following the vote, often interpreted as confidence in the network’s long-term prospects. 

Read Also: Ready to Breakout? Cardano (ADA) Price Prediction for August 2025

ADA Price Today  

ADA now trades above the 25-day moving average at $0.7994 and the 60-day moving average at $0.7508, indicating a sustained bullish bias.

With key resistance at $0.90 and $0.94, analysts are watching closely for a breakout that could push ADA toward the psychological $1 mark. 

Current technical positioning—with the 5-day moving average at $0.8073—suggests buyers remain active despite the recent minor pullback.

The Glacier Drop and New User Growth

The Glacier Drop, launched on August 5, 2025, has emerged as a major catalyst for user growth. Organized by the privacy-focused Midnight Network, the airdrop distributed NIGHT tokens across eight blockchains, with Cardano participants receiving the largest share—about 63% of total tokens claimed.

More than 35,600 claims have been recorded so far, totaling approximately 739.5 million NIGHT tokens, or 3.08% of the total supply. Founder Charles Hoskinson noted the event “brought a ton of new people” into the Cardano ecosystem, as seen in the surge of new wallet activity.

Some technical issues affected Ledger hardware wallet users, who were unable to sign the large transaction payload required for claiming. Developers addressed the problem by introducing a workaround using null transactions with metadata. Despite these hiccups, the airdrop’s impact on engagement and sentiment has been significant.

Read Also: Yoroi Wallet and Midnight Airdrop: How to claim NIGHT tokens

Technical Overview and Price Outlook

At $0.7996, ADA sits between short-term support and resistance levels. Immediate support is at $0.7851, with deeper support around $0.75. Resistance remains at $0.8345, followed by $0.90 and $0.94. A decisive move above these levels could bring ADA within striking distance of $1.

Trading volumes over the last 24 hours reached 19.58 million ADA, equivalent to about $15.91 million in USDT. The relative strength index on the 4-hour chart remains neutral, leaving room for further gains if buying pressure resumes. The MACD continues to trend toward a potential bullish crossover, hinting at possible renewed momentum.

While the broader crypto market will influence ADA’s trajectory, the combination of new funding and rising adoption offers a supportive backdrop for price stability and potential growth.

Governance, Adoption, and Ecosystem Impact

The $71 million development fund approval underscores the strength of Cardano’s governance structure, demonstrating how the community can drive substantial resource allocation without centralized control. This funding could accelerate project launches, network upgrades, and cross-chain partnerships.

The Glacier Drop’s success in onboarding new users may also have long-term benefits, particularly for decentralized applications and DeFi platforms within Cardano’s ecosystem. The arrival of thousands of new wallets increases the potential user base for future projects and contributes to higher on-chain activity.

Challenges remain, especially in refining wallet infrastructure and ensuring smoother interoperability across devices and networks. Still, Cardano’s ability to pair governance achievements with adoption events strengthens its competitive position among layer-1 blockchains.

Conclusion

Cardano’s ADA is consolidating near $0.80 after a week of strong gains fueled by community action and network expansion. The approval of the $71 million development fund marks a milestone for decentralized governance, while the Glacier Drop has brought a wave of new participants into the ecosystem. 

Technical indicators point to a balanced setup, with the potential for further upside if bullish momentum continues. The coming weeks will test whether ADA can build on these gains and challenge the $1 barrier.

FAQ

Why did ADA’s price rise recently?

The rally was driven by a $71 million community-approved development fund and new user adoption from the Glacier Drop.

What is the current ADA price?

ADA is trading around $0.7996, down 1.67% in the last 24 hours.

What are ADA’s key support and resistance levels?

Support: $0.7851 and $0.75. Resistance: $0.8345, $0.90, and $0.94.

How did the Glacier Drop affect Cardano?

It brought over 35,600 new claims and significantly increased wallet activity, expanding Cardano’s user base.

What does the $71 million fund support?

It will finance infrastructure upgrades, developer tools, and ecosystem growth initiatives.