Earlier this year, President Donald Trump announced the US strategic crypto sanctuary. Cardano (ADA) was one of the president’s nominated crypto assets, along with Solana (SOL) and Ripple’s XRP tokens. The president also said he loves Bitcoin (BTC) and Ethereum (ETH). The announcement has caused a wave in the crypto community. Many in the US have long been waiting for a more crypto-friendly environment. Those prayers may have been answered when Trump arrived.
Why did President Trump choose Cardano?
The ADA was one of the most developmentally active blockchain networks. The project included several innovations that have become solid candidates for Ethereum (ETH) and Solana (SoL). Its development activities have been declining recently.
Cardano (ADA) aims for higher scalability, sustainability and interoperability. These aspects of the project will become a future blockchain initiative. The ADA’s smart contract functionality has also proven to be extremely successful.
President Trump’s reasons for choosing ADA as one of his Crypto Reserve assets may have nothing to do with the development of the project. Trump has repeatedly said he wants to support American projects to thrive in the United States. Cardano (ADA) is a US-based blockchain project. Its American roots may have caught the president’s eye.
Poor performance can cause assets to suffer
Cardano (ADA) has been struggling to gain momentum over the last few years. This project was once one of the top ten projects by market capitalization. The ADA is currently the 11th largest crypto project by evaluation. The asset reached an all-time high of $3.09 in September 2021, almost four years ago.
The ADA has been on the daily charts at 0.2% and 49.4% since June 2024, but has declined in other time frames. The asset fell 5.3% on the weekly chart, 19.6% on the 14-day chart and 24.7% on the previous month.
The lack of performance over the past few years may be due to a lack of development in the ADA blockchain. The slower performance can also be attributed to the common bearish that appears in the crypto market.