Cardano price struggles stem from shrinking DeFi liquidity and declining network activity, with ADA trading at $0.41 amid a broader crypto sell-off. The upcoming Midnight launch in December offers potential revival through enhanced privacy features and new partnerships, but sustained growth in TVL is crucial for recovery.
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Cardano’s ADA token has dropped to $0.41, marking one of the weakest performances in the recent market downturn.
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DeFi total value locked on Cardano has fallen 36% to $186 million, lagging behind competitors like Monad.
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Network activity remains low, with minimal presence in stablecoins, RWAs, and Web3 gaming segments.
Discover why Cardano price struggles continue amid DeFi liquidity shrinkage before the Midnight launch. Explore potential recovery paths and key market insights for investors. Stay updated on ADA’s future in crypto.
What Is Causing Cardano Price Struggles Ahead of Midnight Launch?
Cardano price struggles have intensified as the ADA token falls to around $0.41, its lowest in over a year, driven by a sharp decline in DeFi liquidity and waning network adoption. This positions Cardano among the underperformers in the ongoing crypto market sell-off, with total value locked dropping 36% to $186 million. Critics highlight slow development and low user engagement compared to faster-growing rivals, fueling investor skepticism.
How Is Shrinking DeFi Liquidity Impacting Cardano’s Network?
The reduction in DeFi liquidity on Cardano underscores broader challenges in maintaining ecosystem vitality. On-chain data reveals a 36% drop in total value locked to approximately $186 million over recent weeks, reflecting diminished activity in decentralized applications. This lag is evident when compared to emerging networks like Monad, which has rapidly scaled to nearly $100 million in TVL shortly after launch. Cardano’s limited integration of stablecoins further hampers its competitiveness, while segments such as real-world assets and Web3 gaming show almost negligible participation. Experts from analytics firm Nansen have noted this trend, with their CEO publicly questioning Cardano’s staying power in the top 20 cryptocurrencies due to underwhelming usage metrics. These factors contribute to a sentiment of stagnation, as developers and capital migrate to more agile platforms. Short, structured efforts to bolster liquidity through upcoming initiatives could reverse this, but current statistics paint a picture of a network struggling to retain momentum.
Frequently Asked Questions
What Role Will the Midnight Launch Play in Reversing Cardano Price Struggles?
The Midnight privacy-focused sidechain, set for December rollout, aims to boost Cardano’s appeal by enabling secure, data-protected applications. Founder Charles Hoskinson anticipates it will attract developers and liquidity, potentially increasing TVL to hundreds of millions through partnerships. This could alleviate current price pressures if it delivers on promised growth in network activity.
Can Cardano’s Falling-Wedge Pattern Signal a Price Recovery?
Cardano’s price chart displays a falling-wedge formation, often indicating potential bullish reversals after extended downtrends. With the RSI in oversold territory, a breakout above the wedge’s upper resistance could target $0.5097. However, failure to hold support might lead to further declines toward $0.277, depending on broader market conditions.
Key Takeaways
- Declining Liquidity: Cardano’s TVL has shrunk 36% to $186 million, highlighting adoption challenges versus rivals.
- Midnight’s Potential: The December sidechain launch promises privacy enhancements and partnerships to revitalize the ecosystem.
- Technical Outlook: Monitor the falling-wedge for breakout signals; success could spark a rally, while breakdown risks deeper lows.
Conclusion
Cardano price struggles reflect ongoing DeFi liquidity shrinkage and network inactivity, with ADA at $0.41 amid market volatility. Yet, the impending Midnight launch and related projects like RealFi offer pathways to renewed growth and higher TVL. As investors eye December developments, demonstrating tangible adoption will be key to restoring confidence and positioning Cardano strongly in the evolving blockchain landscape.
Published on 26 November 2025 | 08:00
Midnight and an upcoming RealFi project should grow Cardano’s TVL to hundreds of millions! 📈
“The existence of Midnight and the upcoming RealFi project alone should probably do that.” @IOHK_Charles on his livestream. pic.twitter.com/InWaTuRMFj— Cardanians (CRDN) (@Cardanians_io) November 24, 2025
Author: Alexander Zdravkov, Reporter at Coindoo
Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
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