Rich by Coin

Grayscale raised ADA allocation in its Smart Contract Fund above 20.12%. Grayscale Investments has increased Cardano’s share in its Smart Contract Fund, lifting the token’s weighting above 20% even as network activity remains below prior cycle highs. The adjustment brings ADA’s allocation from 19.50% last week to 20.12%, according to publicly disclosed fund composition data. The incremental rise reflects a series of small, consecutive increases rather than a single large rebalance.

While modest in absolute terms, the move signals continued institutional exposure to Cardano through structured investment products. Cardano activity slows as ecosystem enters consolidation phase. The increase in institutional allocation contrasts with a broader decline in on-chain activity compared with peak levels seen during the 2021 market cycle. Periods of reduced activity are not uncommon as ecosystems transition between development cycles.

Cardano’s roadmap continues to include infrastructure upgrades, privacy-focused features, and expanded interoperability, though timelines and adoption rates remain key variables. For investors, Grayscale’s allocation shift offers a measurable signal of institutional exposure, even as underlying network metrics remain in a slower growth phase. Some market participants have pointed to Cardano’s ongoing efforts to expand its decentralized finance capabilities, including initiatives tied to Bitcoin-based collateral and lending structures. However, no direct link between those developments and Grayscale’s allocation decisions has been confirmed.

Observers link allocations to Cardano work on Bitcoin-focused DeFi primitives, though this is not confirmed. Grayscale’s Smart Contract Fund provides diversified exposure to platforms competing in decentralized finance and application infrastructure, making allocation changes closely watched indicators of institutional positioning. Grayscale publishes periodic updates to its fund holdings, allowing investors to track changes across underlying assets. Cardano trades below its previous cycle highs, suggesting portfolio adjustments are underway amid subdued market performance.