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.
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.
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