SEC’s Notation of Cardano’s Utility Boosts Social Sentiments While ADA Daily Gains Skyrocket

Cardano (ADA) has recorded a spike in positive social sentiments this week, courtesy of the recent notations made by the U.S. Securities and Exchange Commissions.

According to the regulator, the native token to the Cardano network is useful in and out of the broader cryptocurrency ecosystem. The regulator would classify the asset as a “smart contract for government services.” 

Market excitement has shot up following the SEC’s disclosure, as Cardano crowd sentiments went on to hit the highest bullish mark recorded in over four months. Per data from on-chain analytics firm Santiment, the ratio of positive to negative comments is 3.5 to 1, the highest recorded from October 30th through November 6th, 2024.

The boost in social sentiment benefits the altcoin when the global cryptocurrency market is experiencing extreme volatility. 

While the SEC’s position on alternative cryptocurrency assets has remained unchanged, the regulator previously backpedaled on claims that a handful of leading altcoins qualify as securities.

In a lawsuit filed against cryptocurrency exchange Binance, the SEC had previously demanded that Cardano (ADA), Solana (SOL), Polygon (MATIC), and five other “third-party crypto assets” be listed as Securities. 

On July 9, 2024, the SEC amended its demands in a filing, asserting that the court need not “issue a ruling as to the sufficiency of the allegations as to those tokens at this time.”

While the new development is considered bullish, as it could catalyze a price rally for ADA, it remains to be seen what the boost in social sentiments will do for the 8th most-valued cryptocurrency by market capitalization. With daily gains going up by more than 4% over the last 24 hours, ADA is trading at a press time price of $0.745.