Grayscale raised Cardano’s weighting in its Smart Contract Fund from 19.50% to 20.07%, an adjustment that analyst Zach Humphries linked directly to the network’s expansion into Bitcoin-based decentralized finance.
Humphries noted that many investors are underestimating ADA’s growth potential by exiting the market amid recent price volatility, when current conditions would represent, in his reading, an accumulation opportunity.
Grayscale’s fund is built on a diversified portfolio of smart contract projects that includes Solana at 28.58%, Ethereum at 28.41%, Cardano at 20.07%, Hedera at 8.40%, Avalanche at 7.67%, and Sui at 6.87%. Humphries argued that Cardano’s strategy to attract Bitcoin liquidity through non-custodial collateral models and stablecoin-based credit systems could set it apart in a market dominated by Ethereum and Solana.
The analyst noted that even limited adoption of Bitcoin DeFi on Cardano could channel substantial capital flows into its ecosystem and strengthen ADA’s appeal among institutions looking to invest beyond traditional smart contracts. Input Output Global is already moving in that direction with the launch of Cardinal, the network’s first Bitcoin DeFi protocol, which enables BTC bridging and staking.
Source: https://x.com/ZachHumphries/status/2024639889132650596
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