TLDR
- Cardano community approved the first-ever treasury funding for core upgrades with 73% voting in favor
- ADA price rose to $0.7265 (5% increase) following the approval, showing market confidence
- Charles Hoskinson suggested a cautious approach to the Snek memecoin’s request for 5 million ADA
- Analysts predict potential ADA price targets of $1.15 to $4.00 based on a cup-and-handle pattern
- Midnight airdrop anticipation and $71M upgrade fund are driving renewed investor interest
The Cardano blockchain has reached a key milestone in its development with the first community-approved funding for core upgrades. This historic vote marks a new chapter in Cardano’s governance and has contributed to a price boost for its native token, ADA.
On August 3, the Cardano community voted overwhelmingly in favor of a development proposal created by Input Output Engineering (IOE). More than 73% of voters supported the proposal, which unlocked funds from the Cardano Treasury for the first time through a public vote.
This decision represents a major shift in how the Cardano ecosystem is managed. It demonstrates that the community can now take an active role in determining how key funds are allocated for the network’s growth.
Following the announcement of the vote results, ADA’s price rose to $0.7265, marking a 5% increase in 24 hours. The market capitalization moved to $25.65 billion, while daily trading volume increased to $1.01 billion.
Community Governance in Action
The approved proposal outlined several updates aimed at improving the Cardano network. These included system upgrades and tools designed to support long-term growth of the ecosystem.
Input Output Engineering, a division of Input Output Global (the main technical team behind Cardano’s development), created the proposal. The community’s strong support shows growing confidence in the direction of the project.
This vote comes after the implementation of the Chang hardfork upgrade, which enhanced Cardano’s governance capabilities. The upgrade has enabled the community to have greater control over the project’s future development.
Shortly after the main treasury vote, another proposal gained attention. The Snek community, representing a memecoin on the Cardano network, requested 5 million ADA from the treasury to fund exchange listings.
Hoskinson’s Response and Market Analysis
Charles Hoskinson, Cardano’s founder, responded to the Snek proposal with a suggestion. He recommended structuring the funding as a bond that would repay the treasury with interest over three years.
Hoskinson made it clear that listing fees for any project, including Midnight, would not be covered by public funds. While expressing support for the Snek community, he emphasized the need for financial responsibility.
The Snek proposal has sparked debate about what types of projects should receive treasury funding. According to market data, Snek records over $2 million in daily trading volume, which some believe provides enough liquidity to follow a bond-style repayment plan.
Beyond the treasury vote, market analysts have noted ADA’s potential for growth. One crypto analyst described it as one of the “biggest sleeper gains” in the current market.
Technical analysis shows ADA forming a cup-and-handle pattern that began developing in 2022. This pattern suggests a potential breakout above the $0.90-$0.93 resistance level could lead to price targets between $1.15 and $4.00.
$ADA monstrous cup and handle!
whales are done accumulating #Cardano
Breakout target: $0.92 → $4.00+ 🎯 pic.twitter.com/kb4rghM3G4
— Smith (@CryptoSmith0x) July 29, 2025
Future Catalysts and On-Chain Metrics
The anticipation surrounding Cardano’s Midnight airdrop has also contributed to growing interest in the ecosystem. The airdrop will distribute 24 billion NIGHT tokens, with 50% going to ADA holders at a conversion rate of 1 ADA to 0.34 NIGHT.
This is one of the most anticipated token distributions of the year, with more than one million wallets qualifying to receive the airdrop. The combination of the airdrop and the recently approved $71 million treasury fund for network enhancements has renewed investor interest.
On-chain metrics support the positive outlook. According to data from Santiment, Open Interest has recovered to $215 million, indicating traders are actively entering new positions. Social dominance of ADA within online discussions has increased to 1.65%, showing greater market visibility.
The $71 million budget will be used to enhance the network’s transaction capacity, cross-chain compatibility, and developer infrastructure. These improvements aim to address key areas for growth in the Cardano ecosystem.
Looking ahead, the direction of Cardano’s price may depend on how it handles upcoming proposals and how investors react to future upgrades. With multiple positive catalysts converging, ADA stands at the edge of a possible trend shift.
The price has remained within the $0.60-$0.90 zone for over a year, building a reliable base. This extended sideways movement has reduced volatility and positioned ADA for potential growth as it approaches critical resistance levels.
