Cardano’s ADA token has recently been making headlines after being mentioned by President Donald Trump as one of the cryptocurrencies to be included in the US strategic crypto reserve. This news has sparked both surprise and criticism within the crypto community, with many questioning the token’s inclusion in the digital asset stockpile.

Launched in 2017, Cardano is one of the oldest smart contract platforms and differentiates itself through its research-driven design approach and use of a delegated proof-of-stake mechanism. Its native coin, ADA, is used for network fees, staking, and governance, with a maximum supply of 45 billion.

One of the main arguments for ADA’s inclusion in the US Digital Asset Stockpile is its capped supply, which can support the coin’s value. Additionally, Cardano’s decentralized governance and ambitious plans for onchain governance also make it an attractive option.

However, when looking at other metrics such as transaction fees, staking yields, and DApp activity, Cardano lags behind its competitors. In Q4 of 2024, the blockchain processed an average of 71,500 daily transactions, with quarterly fees totaling $1.8 million. This is in stark contrast to Ethereum’s $552 million in fees over the same period.

Furthermore, Cardano’s annualized real staking yield was approximately 0.7% in Q4, compared to Ethereum’s 2.73%. Its DApp activity also remains low, with an average of just 14,300 daily transactions in Q4.

These metrics raise concerns about ADA’s long-term value and its suitability for a government-managed asset pool. However, there is potential for growth and adoption in the future, especially with projects exploring Cardano’s compatibility with Bitcoin.

In the end, the decision to include ADA in the US Digital Asset Stockpile will depend on its ability to attract developers and build mass, sustainable audiences. Only then will it truly justify its place in a government portfolio.