Grayscale has increased Cardano’s weighting in its smart contract fund, and it’s quite interesting. In just 12 hours, it has climbed from 19.50% to 20.12%—driven by small adjustments rather than a single big jump. Now, ADA stands as the fund’s third-largest holding after Solana and Ethereum.

What’s interesting is that this increase happened while ADA’s price isn’t doing well at all. It’s currently trading around $0.25, which is far below the peak of the previous cycle. But when big institutions take actions like this, it likely means they see some long-term potential.

The Cardano ecosystem is now working on new developments. Bitcoin-based DeFi protocols such as CardinaL have emerged, allowing Bitcoin holders to bridge their assets to Cardano and stake them there. This cross-chain connection is making ADA even more relevant. A major digital asset platform is now offering loan facilities against ADA holdings through the Morph protocol, with loans of up to $100,000.

Network activity is still below the peak levels of 2021; new project launches are slow and transaction volume is low. However, this kind of adjustment period is common when an ecosystem is restructuring itself. Grayscale’s move shows that big players still believe in ADA and are looking for long-term opportunities.