Cardano Community Neglected as Grayscale’s Dynamic Income Fund (GDIF) Selects Ethereum (CBETH) and Solana (SOL) Instead of ADA from the Top 10 Blockchains

The launch of the Grayscale Dynamic Income Fund aimed to introduce a new era of institutional funds focused on staking rewards. However, the fund surprisingly excluded Cardano, opting instead for Ethereum and Solana as its flagship coins. Smaller coins like Celestia and Osmosis were included, overshadowing ADA’s potential. Grayscale, a prominent crypto investment giant, recently announced the creation of an actively managed fund that invests in proof-of-stake coins to earn staking rewards. While the fund invested in nine cryptocurrencies, Cardano was noticeably absent. As the third-largest proof-of-stake project, Cardano’s exclusion from the fund attracted attention. With a market cap surpassing $26 billion, it holds more than double the value of the fourth-ranked PoS coin, Toncoin. The Cardanians collective, a group of Cardano enthusiasts operating an ADA staking pool, analyzed the implications of ADA missing out on the fund and discussed its future prospects. Grayscale’s selection of PoS coins with high returns, including Ethereum and Solana, was expected given their market dominance and trading volume. In comparison, the other coins in the fund, such as Osmosis and Polkadot, pale in comparison to Cardano in terms of size, utility, and market share. Osmosis, with the highest allocation in the fund at 16.5%, has a market cap of $1.05 billion and is not even ranked in the top 100 coins. Polkadot, the third-highest allocation, has a market cap and trading volume half that of Cardano. However, both projects, DOT and OSMO, offer high staking yields at 16.52% and 10.76% respectively, while ADA’s yield stands at 3.05%. The Cardanians believe that Grayscale’s exclusion of Cardano from its fund could be a blessing in disguise. On one hand, inclusion in the fund could lead to price increases similar to what Bitcoin spot ETFs have done for the top cryptocurrency. Additionally, the fund’s accumulation of coins enhances security and makes the cost of a 51% attack significantly higher. However, there are also drawbacks to being part of the fund. While it can boost prices, it can also cause a collapse if it loses interest in a project and sells off its coins. Furthermore, the Cardanians argue that Grayscale’s strategy resembles a sophisticated version of airdrops, which goes against the decentralized nature of crypto. They predict that this system will eventually reach an economic impasse, where excessive inflation could cause prices to plummet, making staking rewards less appealing. Alternatively, if inflation diminishes over time, as seen with Solana, staking funds may lose interest and shift towards other projects. Despite its exclusion from Grayscale’s fund, Cardano continues to garner attention and support within the crypto community.