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HomeCrypto NewsMarketHere’s What Cardano Price Could Be if the U.S. Government Buys 10% of ADA for Its National Reserve

Here’s What Cardano Price Could Be if the U.S. Government Buys 10% of ADA for Its National Reserve

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With the U.S. planning to include ADA in its digital asset stockpile, we examined how much one ADA could be worth if the government were to acquire 10% of its total supply for this purpose.

Momentum has been growing within the Cardano community following the U.S. government’s announcement of plans to create a national digital asset stockpile. 

US Digital Asset Stockpile Initiative 

The initiative, unveiled earlier this year, saw President Donald Trump specifically highlight ADA, XRP, ETH, and SOL as potential assets to be included.

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Trump includes ADA as part of US digital asset reserve
Trump includes ADA as part of US digital asset reserve

However, since signing the executive order to establish the national crypto stockpile, neither the president nor his cabinet members have disclosed how many of each token the government plans to acquire.

Per the executive order, the stockpile would be funded using cryptos obtained through civil or criminal forfeitures. So far, none of the $35.67 billion in seized digital assets includes ADA. 

However, speculation suggests the government could convert some of the stablecoins in its holdings into ADA, but this remains uncertain. 

Potential Price of ADA if US Government Buys 10% of ADA Supply 

Although officials have not disclosed how much ADA they plan to accumulate, we examined what could happen to the token’s price if the government were to acquire 10% of its total supply.

For context, ADA has a maximum supply of 45 billion tokens. Acquiring 10% of this supply for the reserve would see the U.S. government lock up 4.5 billion ADA. Despite this hypothetical purchase, the exact price of ADA cannot be determined by the government acquiring and locking up 10% of the token’s supply in a reserve

This is because the tokens would remain part of ADA’s total supply, as observed in other crypto treasury initiatives. Such a large-scale acquisition would not only lend significant legitimacy to ADA but also reduce the amount of the token available on the open market, increasing its scarcity. 

Consequently, this move could boost investor confidence, prompting both institutional and retail investors to buy in, and potentially triggering a major price surge. 

The exact price after a hypothetical government purchase of 10% of ADA’s supply solely depends on the market’s reaction. A high demand after the acquisition would translate to a higher price since only fewer tokens would be available in the open market after the purchase, and vice versa.  

Meanwhile, analysts remain optimistic about Cardano’s outlook, particularly if the U.S. government moves forward with adopting ADA as a reserve asset. Community figure Ssebi believes this initiative, alongside four key catalysts, including the Midnight project, could propel ADA toward the ambitious $10 mark. Achieving this target would require the token to surge 1,483% from its current price of $0.6317.

DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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