Analysts are currently assessing the likelihood of a Cardano (ADA) spot Exchange-Traded Fund (ETF) launching this year. While some estimations suggest a 75% probability of approval, this optimism is tempered by the current market dynamics and Cardano's on-chain metrics.
<h2>Stagnant Market Performance</h2>
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Despite Bitcoin's recent surge, <a href="https://www.cryptoknowmics.com/news/cardanos-bullish-turn-sentiment-defies-price-action/" target="_blank" rel="noopener">Cardano</a> has struggled to gain upward momentum, remaining below the $0.80 level. This sluggish performance contrasts with typical altcoin behavior during Bitcoin rallies, where capital usually flows into high-cap altcoins. The absence of ETFs is considered a key factor contributing to this lack of momentum.
<h2>On-Chain Metrics Raise Concerns</h2>
Cardano's on-chain data presents a mixed picture. While transaction volume in profit-to-loss ratio spikes during price increases, indicating potential profit-taking, the network value to transaction (NVT) ratio has reached a three-month high, suggesting underlying weakness. This implies that the altcoin's price may be outpacing actual network activity.
<h2>ETF Approval Odds and Market Competition</h2>
Bloomberg analysts estimate a 75% chance of a Cardano ETF approval. However, this is lower than the 90% probability assigned to Solana and Litecoin ETFs. The increasing competition among altcoins for ETF approval intensifies the pressure on Cardano to demonstrate stronger market dynamics and on-chain support.

Cardano ETF Prospects Face Market Headwinds

Analysts see a 75% chance of a Cardano ETF, but market stagnation and on-chain metrics pose challenges.

Cardano ETF Prospects Face Market Headwinds

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