- Cardano (ADA) recently experienced a surge in bullish sentiment, driven by misleading rumors about SEC classification and its inclusion in a speculative Bitcoin reserve, leading to a short-lived price spike.
- However, after losing 38% of its gains, ADA now faces the risk of being overtaken by Dogecoin, though its community remains optimistic about its long-term potential.
Cardano (ADA) has recently experienced a notable surge in positive sentiment, marking its highest level of bullishness in four months. According to data from analytics platform Santiment, the ratio of positive to negative Cardano-related social media comments stands at an impressive 3.5 to 1. However, this optimism may not be entirely organic, as it appears to be fueled by misleading news.
The Source of the Hype
Much of the bullish sentiment surrounding Cardano stems from rumors about the U.S. Securities and Exchange Commission (SEC) classifying ADA’s use case as “smart contracts for government services.” While this claim made waves on social media, it was later debunked. The so-called SEC document was merely an opinion submission, meaning it does not reflect any official stance from the regulatory body.
Further fueling speculation was an unexpected announcement on March 2 that ADA would become part of a Bitcoin reserve. This triggered a sharp price spike, momentarily elevating Cardano’s value. However, the excitement was short-lived. It was later revealed that ADA was merely included in a speculative “stockpile” alongside other altcoins, with little clarity on how these tokens would be acquired.
Price Volatility and Market Reality
Despite the initial surge, ADA has since surrendered nearly all of its gains, tumbling more than 38% from its March 2 peak. As a result, Cardano is now on the verge of being overtaken by Dogecoin (DOGE) in market capitalization. At present, ADA is valued at $25.5 billion, while DOGE trails closely at $25 billion. Over the past week, DOGE has recorded a 4% gain, whereas ADA has struggled to maintain momentum.
Community Optimism Persists
Even amid this price correction, the Cardano community remains steadfast in its optimism. The continued positive sentiment suggests that investors and enthusiasts still have faith in ADA’s long-term potential, regardless of its short-term fluctuations.
While fake news may have temporarily fueled Cardano’s bullish run, its loyal supporters continue to believe in the altcoin’s future. However, investors should remain cautious, ensuring that optimism is backed by real developments rather than speculation-driven hype. As always, the cryptocurrency market remains unpredictable, and only time will tell if ADA can translate sentiment into sustained growth.
