Grayscale Boosts Cardano (ADA) to Top 3 in Smart Contract Fund

In a striking development that’s sending waves across the crypto ecosystem, Grayscale has officially rebalanced its Smart Contract Platform Ex-Ethereum Fund (GSCPxE), propelling Cardano (ADA) into the fund’s third-largest position. 

The news was spotlighted by respected crypto commentator Mintern on X, who noted that ADA now commands a substantial 22.91% allocation — surpassing the combined holdings of Avalanche, Polkadot, and Sui. This recalibration places Cardano in a formidable position behind only Ethereum and Solana, igniting fresh discussions about ADA’s long-term potential in the smart contract arena.

BREAKING NEWS:

GRAYSCALE BOOSTS CARDANO TO TOP 3 IN SMART CONTRACT FUND😱🔥

Grayscale @Grayscale has rebalanced its Smart Contract Fund, boosting Cardano ($ADA) to its 3rd largest holding at 22.91%.

This move places Cardano ahead of #Avalanche, #Polkadot, and #Sui combined.… pic.twitter.com/LfK2lsZKic

— Mintern (@MinswapIntern) April 7, 2025

A Resurgent ADA: From Underdog to Heavyweight

Cardano’s ascent within Grayscale’s fund is more than a routine rebalancing — it marks a strong vote of confidence in the protocol’s future from one of the largest digital asset managers in the world. Despite often flying under the radar compared to more hyped projects, Cardano has been steadily building an ecosystem grounded in rigorous academic research, methodical development, and an emphasis on security and scalability.

With a robust staking model, growing developer community, and recent milestones like Hydra for Layer 2 scaling and the integration of smart contract functionality through Plutus, Cardano has been laying down infrastructure that is now beginning to reflect in institutional portfolios. Grayscale’s latest move underscores that institutional capital is finally starting to catch up with ADA’s long-term vision.

Grayscale’s Smart Contract Bet: ADA on the Rise

The Grayscale Smart Contract Platform Ex-Ethereum Fund is designed to offer investors diversified exposure to leading blockchain platforms that support smart contracts, excluding Ethereum. In the fund’s latest allocation update, ADA’s weight surged to 22.91%, cementing its place ahead of several competitors that have been more prominent in headlines — including Avalanche, Polkadot, and Sui.

This development may also reflect investor anticipation of Cardano’s ecosystem expansion in 2025, including planned updates and partnerships expected to further decentralize infrastructure, boost throughput, and drive adoption in enterprise and developing markets alike. ADA’s move up the ranks may be indicative of a broader narrative shift among institutional players, away from speculation and toward fundamentals.

Can Cardano Surpass Ethereum and Solana?

The question posed by Mintern — whether Cardano could eventually overtake Ethereum or Solana — is ambitious, but increasingly plausible in light of the protocol’s methodical growth. Ethereum remains the dominant smart contract platform by far, and Solana has captured mindshare with its high-speed, low-fee architecture, particularly in the NFT and DeFi spaces. Yet both platforms have struggled with periodic congestion and centralization concerns that Cardano aims to avoid through its layered approach and formal verification framework.

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Cardano’s growth may not be as fast-paced or headline-grabbing as its rivals, but its architectural philosophy prioritizes sustainability and long-term resilience. If current trends continue — especially with rising adoption in regions like Africa, where Cardano has been piloting real-world blockchain use cases — ADA’s growing weight in institutional portfolios like Grayscale’s could be a sign of a slow-burning takeover.

Institutional Momentum and Market Implications

Grayscale’s support could have cascading effects across the market. Institutional investors often rely on such funds as a benchmark or signal for rebalancing their own portfolios. ADA’s rising dominance in GSCPxE may prompt further allocation shifts from other large investors seeking diversified smart contract exposure beyond Ethereum.

Moreover, with regulatory clarity improving in key jurisdictions and Cardano maintaining a consistent focus on compliance and academic rigor, the project is well-positioned to capture capital from risk-averse institutional players entering the space for the first time.

ADA’s Time to Shine

The latest Grayscale update marks a turning point for Cardano’s perception in institutional circles. Mintern’s spotlight on the fund’s rebalancing reflects the growing recognition that ADA is not merely a speculative asset but a foundational piece of the smart contract landscape. While overtaking Ethereum or Solana may still be a long-term possibility, the momentum is building — and if ADA continues on its current trajectory, that conversation will only become more serious.

As institutional capital begins aligning more closely with projects delivering real-world utility, Cardano’s methodical, research-driven approach might just become its greatest advantage.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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