The Cardano founder Charles Hoskinson has reacted to a recent disclosure that the worth of the Cardano Treasury could skyrocket to $4.5 billion if ADA reclaims its ATH at $3.
Hoskinson, recognized for his reactions to community updates on X, has displayed visible elation concerning the substantial growth trajectory observed within the Cardano ecosystem during the current market cycle.
Most recently, the Cardano founder commented on a disclosure relating to the growth of the Cardano Treasury, reacting with a GIF of the nyan cat rainbow, a popular meme featuring a pixel art cat with a Pop-Tart body flying through space.
https://t.co/dwLZ3aqjok pic.twitter.com/FTPgSgq3Xa
— Charles Hoskinson (@IOHK_Charles) February 17, 2024
Charles Hoskinson’s comment came after an update from PRIDE, a prominent Cardano stake pool operator. Citing on-chain data, the official PRIDE X account confirmed that the size of the Cardano Treasury has grown since the previous market cycle.
For the uninitiated, the Cardano Treasury is a pool of funds in the Cardano blockchain dedicated to supporting the development and growth of the ecosystem by bankrolling growth initiatives.
The Treasury contains ADA that comes from transaction fees and a portion of the block rewards. Notably, the Cardano community can propose and vote on projects to receive funding from the Treasury, allowing for decentralized decision-making in the Cardano ecosystem.
Cardano Treasury Could Hit $4.5B if ADA Reaches $3
Since the Treasury holds ADA tokens, the worth of its assets typically surges when ADA records price increases. For instance, when Cardano hit its all-time high above $3 in September 2021, the Treasury’s worth skyrocketed to $1.745 billion despite it holding just 587.8 million ADA in epoch 287.
While the tokens held in the Treasury have increased from here, the value of these tokens has collapsed since September 2021 due to ADA’s price slump. As of press time, the Cardano Treasury currently holds 1.48 billion ADA as the ecosystem witnesses increased collected fees and rewards.
Nonetheless, these 1.48 billion ADA tokens are only worth $930 million against ADA’s current price of $0.6289. The team behind PRIDE emphasized that the worth of these tokens could skyrocket to around $4.5 billion should Cardano recover its all-time high above $3.
The disclosure from PRIDE came on the heels of the conclusion of voting for Cardano’s Catalyst Fund 11 initiative, which recorded 300,000 individual votes from 8,000 wallets. The community voted to fund 300 more projects in the Cardano ecosystem.
Following the conclusion of the governance voting, the total number of projects funded by Cardano’s Catalyst would rise to 1,647. The funds for bankrolling the Catalyst projects would come from the Treasury, which would skyrocket if ADA hits $3.
Market watchers believe ADA’s recovery of the $3 ATH is a question of time and not feasibility. Analyst Dan Gambardello recently predicted that ADA would reclaim the $1 price only after the Bitcoin (BTC) halved in April. In addition, Ali Martinez, a veteran trader, sees ADA hitting $8 if it repeats its 2021 run.
Meanwhile, as of press time, Cardano has breached the $0.62 psychological price level, with its current value of $0.6289 representing a 16% surge in the past seven days. However, CoinMarketCap data confirms a drop in 24-hour trade volume to $595,011,625 ($595 million).
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
