Preface

As an important participant in the cryptocurrency market, Cardano (ADA) has attracted significant attention from investors due to its unique blockchain technology and continuously developing ecosystem. With the continuous changes in market trends, the price trend of ADA in 2025 has become a topic of concern for many investors. This article will analyze the current development, market dynamics, and future price predictions of Cardano to help readers better understand the investment potential of ADA.

The current development status of Cardano

Cardano is a blockchain platform created by Charles Hoskinson (one of the co-founders of Ethereum), aiming to address the scalability, interoperability, and sustainability issues of Bitcoin and Ethereum. As a proof-of-stake (PoS) based blockchain, Cardano offers lower energy consumption and higher transaction efficiency, and enhances its ecosystem through continuous technical updates. Currently, Cardano’s development team IOHK is actively promoting various upgrades, such as Voltaire and Midnight blockchains, the application of these technologies will bring more privacy protection features and advances in governance mechanisms for Cardano. In addition, Cardano’s expansion in the areas of DeFi, NFTs, and smart contracts also contributes to its continuous growth in market value.

The main factors affecting ADA prices

The price of ADA is influenced by a variety of factors, including market demand, technological development, macroeconomic conditions, and regulatory policies. Here are several key influencing factors:

• Cardano technical upgrade

Cardano’s development team plans to introduce Merged Mining in 2025, allowing Bitcoin users to interact with Cardano’s DeFi applications. The Cardano Midnight blockchain will introduce privacy transaction capabilities, which may enhance its attractiveness in the financial applications sector.

• Market trends and investment sentiment

The fluctuation of the cryptocurrency market is closely related to the overall investment sentiment. If investors’ confidence in Cardano increases, the price of ADA may be driven up.

• Changes in the regulatory environment

The regulatory policies of governments on cryptocurrencies will directly affect market trends. If the regulations become stricter, it may suppress the development of ADA; conversely, if the regulatory framework becomes clearer and more favorable for innovation, ADA may usher in a new wave of growth.

• Competitor’s development

Cardano’s main competitors include Ethereum, Solana, Polkadot, and other blockchain platforms. If these platforms introduce more attractive technologies or solutions, it may affect Cardano’s competitiveness in the market.

Zero capital gains tax policy

The recent discussion in the cryptocurrency market has been sparked by the possibility of the US introducing a zero capital gains tax policy, particularly for US-based crypto projects like Cardano (ADA). This could bring significant benefits. Eric Trump, the son of former President Trump, recently stated that the US government plans to grant certain domestic crypto projects (such as XRP, HBAR, ADA, etc.) a 0% capital gains tax rate, while non-US projects could face up to a 30% capital gains tax. If implemented, this move could potentially alter the investment landscape of the crypto market, with profound implications for ADA and other eligible crypto assets.

Potential impact

If the US government officially introduces a 0% capital gains tax, this will have the following potential impacts on ADA:

• Attract more American investors to enter

For American investors, if ADA is included in the tax-free scope, it will attract more capital inflow and increase the market demand for ADA. In traditional investment markets, such as stocks or real estate, capital gains tax still needs to be paid, while ADA, if exempt from this tax burden, will be very attractive to investors.

• Strengthen the adoption of Cardano in the United States

Cardano is primarily considered an international blockchain project, with global developers and businesses using its technology, but if the U.S. government provides tax incentives for ADA, it may encourage more domestic American businesses and institutional investors to adopt Cardano blockchain technology, further promoting its ecosystem development.

• Enhance the market competitiveness of ADA

Compared with Ethereum (ETH) and other blockchain platforms, Cardano has advantages in transaction costs and energy consumption. Assuming ADA receives dual blessings of tax incentives and technological advantages, its competitiveness will be further enhanced, potentially attracting more DeFi, NFT, and Web3 projects to be deployed on Cardano.

Expert opinion

Although this policy announcement has sparked market discussions, many industry experts are cautious about its feasibility. For example, Dennis Porter, the founder of Satoshi Action Fund, believes that completely abolishing capital gains tax on cryptocurrencies is difficult to achieve in the short term, for the following reasons:

• Fiscal impact: The cryptocurrency market is huge. If the government completely exempts capital gains tax, it will lead to a significant reduction in tax revenue, affecting fiscal income.
• Difficulty in passing the bill: such tax reduction measures require approval from Congress, and in the current political environment, it is uncertain whether Congress will support this proposal.
• Continuation of existing tax policies: The current focus of the government is on continuing the tax reduction policies of the Trump era, rather than introducing new tax breaks.

Porter also proposes a more practical alternative, allowing transactions of Bitcoin and other digital assets to enjoy a tax-free amount of 200 US dollars. This policy is easier to implement and also helps promote small-value payment applications of digital assets, such as using cryptocurrencies to purchase coffee, meals, and other daily expenses.

ADA price prediction

By calculating data through AI models, referencing past ADA prices and related information, making predictions about future prices, this is for data sharing purposes only and not investment advice. Please refer to the following chart:

ADA price prediction trend

ADA price prediction and confidence interval

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Summary

This article provides a comprehensive analysis of the current development status, price influencing factors, and future prospects of Cardano (ADA). As a blockchain platform based on proof of stake, Cardano has occupied an important position in the cryptocurrency market with its innovative technology and expanding ecosystem. The introduction of technical upgrades such as merged mining and privacy transaction features is expected to further enhance its market attractiveness and competitiveness. The price of ADA is not only influenced by technical developments, but also closely related to market sentiment, regulatory policies, the development of competitors, and macroeconomic conditions, especially the potential introduction of zero capital gains tax policy in the United States, which may significantly benefit ADA by attracting more American investors and enhancing its market competitiveness. However, the feasibility of this policy remains uncertain.

Overall, Cardano has enormous potential for future development, but it also faces multiple challenges from the market and policies. Investors should carefully weigh these factors and pay attention to relevant technological progress and policy changes.