Cardano (ADA) price and market valuation has suffered a significant market setback following President Donald Trump’s Cardano news reveal of a reversal on its inclusion in the U.S. Crypto Strategic Reserve.
Initially, on March 2, 2025, Trump announced via Truth Social that ADA would be part of the reserve. This triggered a 60% price rally within 90 minutes, reaching $1.14.
This rally boosted ADA’s market cap to approximately $41.7 billion, calculated based on a price of $1.14. It was estimated circulating supply of 36.6 billion coins, per CoinMarketCap.
The surge was accompanied by a 1,700% spike in trading volume to $10 billion at its peak. The same reflecting heightened investor interest.
Cardano News: Trump Crypto Reserves U-Turn
However, on March 6, 2025, Trump’s administration clarified that ADA would be relegated to a no-buy stockpile, not the reserve for government purchases.
This meant the government would not purchase ADA, only hold existing amounts, likely negligible. The reversal triggered a swift sell-off, with ADA price dropping to $0.700 by March 14, 2025. It resulted in a market cap of $26.7 billion, a $15 billion loss from the peak.
This 36% price decline from $1.14 to $0.73, per market data, erased the earlier gains and pushed ADA from fifth to eighth in crypto rankings, per CoinMarketCap data.
Charles Hoskinson, Cardano’s founder, had been politically active, creating a Political Action Committee, endorsing a U.S. presidential candidate. He also donated to a Senate campaign, and has attended galas with Trump’s allies within the past year, per industry reports.
Despite these efforts, he was not invited to the White House Crypto Summit on March 7, 2025, highlighting the failure of his lobbying to secure ADA’s reserve status.
U.S. Government’s ADA Holdings: Less Than $1M?
Data from Arkham estimates the U.S. government holds less than $1 million worth of ADA. This estimate, subject to verification by an ongoing audit led by investor David Sacks, highlights the token’s minimal presence in federal reserves. The limited holdings further undermined investor confidence in ADA’s strategic importance.
The market impact has been stark, with ADA losing $15 billion in market cap since March 2, 2025.
Hoskinson’s recent activities, per his X posts, have shifted to commenting on crypto markets. He blasted Solana and memecoins, posting memes, and focusing on IOHK and Cardano development.
This reversal, tied to Trump’s decision to split the reserve into a BTC-only buying fund and an altcoin no-buy stockpile, has left ADA investors reeling, with the price at $0.70, down from $1.14, amid broader market volatility.
Cardano news details the rapid market cap loss pushing ADA down the rankings despite earlier reserve hopes, highlighting the volatility of political endorsements in crypto.
The numbers—$15 billion drop, 36% price fall, and less than $1 million government holding—paint a picture of a community grappling with dashed expectations and a founder adjusting to a new reality.
