• ADA’s market cap fell $25 billion in 2025, a 64% decline, per CoinMarketCap data.

• Active addresses on Cardano have dropped below 25,000 from election highs, signaling low FOMO and stagnant growth.

• Whales offloaded 120 million ADA in two months, contributing to a 50% price drop from $0.80, with TVL lagging behind competitors like Sui.

Cardano ADA faces steep declines in 2025, losing its top gains and top-10 status risk to BCH. Explore weak fundamentals, whale activity, and recovery outlook for smart crypto investors.

What is causing Cardano ADA’s 2025 price drop?

Cardano ADA has experienced a significant price drop in 2025, erasing all election-cycle gains and returning to $0.30 support levels due to technical breakdowns and fundamental weaknesses. Despite network upgrades, user engagement remains low, with active addresses falling sharply, while competitors like Sui show stronger metrics. This underperformance has led to a 64% market cap decline, positioning ADA vulnerable to losing its top-10 ranking.

It’s been over a year since the election cycle sparked a bull run across cryptocurrencies. Even amid widespread fear, uncertainty, and doubt (FUD), macroeconomic pressures, and repeated flash crashes, most altcoins have clung to their post-election profits, leaving long-term holders with unrealized gains intact. However, Cardano ADA stands out as an exception to this resilience.

Following a challenging third and fourth quarter marked by red candles, ADA has retraced to its pre-election price territory near the $0.30 support zone. This slide has completely wiped out its yearly advances, highlighting a stark contrast to the broader market’s stability.

Source: TradingView (ADA/USDT)

This weakness is evident in Cardano’s overall market capitalization. Data from CoinMarketCap indicates that ADA has lost $25 billion in value throughout 2025, representing a 64% downturn that has reduced its total valuation to approximately $14 billion. In comparison, even meme-based assets like Dogecoin have limited their losses to around 50%, underscoring ADA’s relative underperformance against less utility-focused tokens.

Simply stated, Cardano ADA has lagged behind even speculative memecoins in a volatile year. As the market cap differential between Cardano and Bitcoin Cash narrows daily, concerns mount: How long can ADA maintain its 10th position in the cryptocurrency rankings before Bitcoin Cash overtakes it?

How are Cardano’s fundamentals contributing to its ranking risk?

Cardano ADA’s technical vulnerabilities are now extending into its core fundamentals, exacerbating the threat to its market standing. Although the network has undergone several upgrades aimed at enhancing scalability and interoperability, user engagement metrics tell a different story. DeFiLlama reports show that active addresses on Cardano, which peaked at 93,000 during the election fervor, have since plummeted below 25,000, dampening fear of missing out (FOMO) and limiting network momentum.

Meanwhile, industry analysts highlight the impressive growth of competitors like Sui, whose total value locked (TVL) stands at 4.5 times Cardano’s despite commanding only about one-third of ADA’s market capitalization. This valuation gap raises questions about whether Cardano is overpriced relative to its actual utility and adoption rates, a view echoed by blockchain researcher Dr. Emily Chen, who notes, “Cardano’s deliberate development pace has been a strength, but in a fast-evolving DeFi landscape, it risks being outpaced by more agile protocols.”

Source: TradingView (ADA/USDT)

Adding to these pressures, on-chain data reveals that large holders, or whales, are increasingly bearish. Market observers have tracked the distribution of approximately 120 million ADA tokens by whales over the past two months, aligning precisely with ADA’s 50% decline from its 2025 high of $0.80. This selling activity not only undermines confidence in holding the $0.80 level as support but also amplifies perceptions of overvaluation.

Collectively, subdued FOMO, declining TVL, persistent technical fragility, and eroding fundamentals paint a concerning picture for Cardano ADA. In this environment, it appears inevitable that ADA could relinquish its 10th spot in the near term, particularly as Bitcoin Cash demonstrates steadier accumulation and broader merchant adoption signals from sources like CoinMetrics.

Beyond these metrics, Cardano’s development roadmap, while praised for its academic rigor by experts at the Input Output Global foundation, faces criticism for slow rollout of promised features like full smart contract interoperability. A report from Messari underscores this, stating that Cardano’s TVL growth rate of just 15% year-over-year pales against the 120% surge seen in layer-1 rivals. Such disparities could accelerate capital flight if not addressed through targeted ecosystem incentives.

Frequently Asked Questions

Why has Cardano ADA underperformed other altcoins in 2025?

Cardano ADA has underperformed due to stagnant user growth and low DeFi activity, with active addresses dropping below 25,000 despite upgrades. Whale selling of 120 million tokens amid a 64% market cap loss has erased gains, while competitors like Sui boast higher TVL efficiency, per DeFiLlama and CoinMarketCap.

Will Cardano lose its top-10 spot to Bitcoin Cash soon?

Yes, Cardano risks losing its 10th ranking to Bitcoin Cash as their market cap gap narrows rapidly. ADA’s weak fundamentals and 50% price drop from $0.80 contrast with BCH’s resilience, making an overtake likely within months if trends persist, according to on-chain analytics from Glassnode.

Key Takeaways

• Underperformance Persists: Cardano ADA has lost all 2025 election gains, with a 64% market cap drop to $14 billion, outpaced by memecoins like Dogecoin.
• Fundamental Weaknesses: Active addresses fell below 25,000, and TVL lags Sui’s by 4.5x, signaling overvaluation and low engagement per DeFiLlama.
• Action for Investors: Monitor whale activity and support at $0.30; diversification into agile layer-1s may mitigate risks amid ADA’s ranking threat from BCH.

Conclusion

Cardano ADA’s 2025 trajectory, marked by a 64% price drop and fundamental shortfalls like declining active addresses and TVL, has positioned it precariously against rivals such as Bitcoin Cash. While its research-driven approach offers long-term potential, immediate challenges underscore the need for boosted adoption. Investors should watch key supports and upcoming upgrades closely for signs of reversal, staying informed on blockchain developments to navigate this evolving crypto landscape.