Recent market developments, including February’s widespread liquidations and President Trump’s announcement of a strategic crypto reserve, are setting the stage for a more sustainable rally in top altcoins, with Cardano (ADA) positioned for the biggest surge, according to Kaiko research.
Trump’s Strategic Crypto Reserve and Altcoin Impact
On Sunday, President Trump revealed the formation of a U.S. strategic crypto reserve, initially including Ripple (XRP), Solana (SOL), and Cardano (ADA) before later adding Bitcoin (BTC) and Ethereum (ETH). According to Kaiko, the inclusion of select altcoins in this reserve is expected to accelerate capital inflows into the altcoin market, concentrating liquidity among leading assets.
Kaiko’s research indicates that the top 10 altcoins now account for 77% of altcoin trading volume on U.S. exchanges, up from 58% a year ago. This increasing dominance suggests that capital is becoming more concentrated in key altcoins, leading to significant price movements due to their lower liquidity compared to Bitcoin.
ADA Leads Altcoin Surge
Among the altcoins in the strategic reserve, ADA stands out as the asset primed for the largest pump. The token lags behind other reserve-listed assets in performance, but Kaiko’s research suggests this gap will close as capital rotation intensifies.
Market activity supports this projection. Following the reserve announcement, intraday volatility for large-cap altcoins surged over 600% for ADA, indicating strong market reactions. ADA has also witnessed the strongest capital inflows among altcoins, with open interest increasing by 10% year-to-date to $554 million.
Reduced Leverage Strengthens Market Stability
Another key factor supporting an altcoin rally is the significant reduction in leverage across top altcoins following February’s downturn. The wave of liquidations reset overleveraged positions, reducing the risk of sudden crashes. Kaiko suggests that this combination of increased capital inflows and lower leverage will lead to less volatile and more sustained price increases in the coming months.
With liquidity increasingly concentrated in major altcoins and the effects of Trump’s strategic reserve announcement unfolding, analysts are closely watching ADA and other top assets for potential breakouts in the evolving crypto landscape.
