Why ADA’s recovery path could be tricky despite Cardano dazzling on this front

ambcrypto.com:

Grayscale just unveiled its first quarter reports, which turned out to be good news for Cardano [ADA] enthusiasts. This was because the report highlighted the Digital Large Cap and Defi funds, with Cardano occupying a prominent position.

The development could be a cause for celebration for ADA holders, as the report promises exciting prospects for the future.

– Read Cardano’s [ADA] Price Prediction 2023-24

As per Grayscale’s Q1 report ADA occupied a higher position in the updated fund component weightings. With a weight of 28.13%, Cardano’s prominence increased slightly as compared to the previous quarter. 

This was an indication of its growing significance in the smart contract ecosystem. This was also evident in Grayscale’s GSCPxE Fund, which provides investors with exposure to various smart contract platforms beyond Ethereum [ETH], with ADA being a major component of the fund.

However, in the Grayscale Digital Large Cap Fund, Cardano’s share witnessed a slight drop from 1.86% in Q4 2022 to 1.69% in Q1 2023. Despite this setback, ADA’s inclusion in both funds highlighted its growing relevance in digital assets and its potential to deliver significant returns to investors.

Despite the positive developments for ADA in Grayscale’s Q1 report, the digital asset was experiencing a slump in the market. ADA was trading at a loss as of this writing, marking the second consecutive day of decline. Its current trading value was around $0.38, with a less than 1% loss. 

However, this downward trend is not unique to ADA, as the digital asset market has experienced a dip in recent days. Nevertheless, the future remains bright for ADA, with its growing relevance in the smart contract ecosystem offering exciting prospects for