Cardano (ADA) has experienced a major price surge, with its value rising over 15% in the past 24 hours. This surge mirrors the broader positive movement in the altcoin market and Bitcoin’s recent rally. On February 11, 2025, ADA traded around $0.79, marking a significant recovery after a tough period of bearish market sentiment.

The surge was further fueled by news that Grayscale Investments has filed for a spot Cardano exchange-traded fund (ETF), a move expected to bring institutional investors into the ADA market. This development is not only encouraging for Cardano but for the broader cryptocurrency sector as well.

Grayscale’s Spot Cardano ETF Filing

The news that Grayscale, one of the largest asset management firms in the crypto space, has applied for a spot Cardano ETF has sent waves through the market. The application, filed with the U.S. Securities and Exchange Commission (SEC), aims to give institutional investors the ability to gain exposure to Cardano’s price movements through shares backed by actual holdings of ADA.

This development comes at a time when institutional interest in cryptocurrency continues to grow, and the filing signals a maturing crypto market. If approved, the Grayscale Cardano Trust could significantly boost ADA’s liquidity, attracting more investors, particularly in the U.S. market.

The Altcoin Market’s Positive Shift

Alongside Bitcoin’s recent test of resistance levels above $98,000, the broader altcoin market has been seeing an upswing, with Layer 1 blockchains such as Solana (SOL), Ethereum (ETH), and Cardano leading the way. After two weeks of significant liquidations in leveraged trading, the market sentiment has shifted positively, and Cardano’s performance is a strong indicator of this trend.

With a fully diluted market capitalization of $35.7 billion and a daily trading volume of around $1.1 billion, Cardano is demonstrating solid market strength, especially as other cryptocurrencies face volatility. The increase in ADA’s value is likely to continue as institutional interest grows, especially with the potential approval of the Grayscale ETF.

What’s Next for Cardano?

Despite recent bullish momentum, analysts are cautious about ADA’s path forward. Crypto analyst Ali Martinez suggests that ADA needs to hold strong support levels between $0.67 and $0.81 to confirm the bullish trend and avoid further downside. If Cardano successfully rebounds from the $0.81 level, it could set the stage for a move toward its all-time high above $3. This would represent a major breakout for the network and a significant win for investors.

However, Cardano must maintain its upward trajectory to avoid a reversal. Investors will be closely monitoring these key levels as they wait for further confirmation of the bullish trend. If Cardano can hold steady and push past resistance, the $3 mark may be within reach.

Conclusion

The 15% price increase in Cardano is a result of several factors, but the filing for a spot Cardano ETF by Grayscale is the key catalyst behind this latest surge. With institutional investment potential on the horizon and a positive shift in market sentiment, ADA is poised for potential growth. If Cardano maintains key support levels, it could be on track to break its previous all-time high, making it an exciting time for both investors and the Cardano network.