Whales exhibit buying activity in the Cardano market, as price movements show signs of ambiguity.
Cardano, the popular cryptocurrency, has experienced a significant price drop in recent months, with its value decreasing nearly 18% in June alone. This decline can be attributed to several factors affecting its ecosystem, as well as broader market and competitive pressures.
One of the key reasons for the price drop is a decline in ecosystem activity. The total value locked (TVL) in Cardano's decentralized finance (DeFi) ecosystem has dropped nearly 20% over the past 30 days to about $315 million, indicating reduced use and adoption of its DeFi projects.
Another factor is decreased user engagement. Daily active users on the Cardano network have fallen sharply to around 20,000, the lowest since 2020 and significantly below earlier 2025 peaks of 38,000. This signals waning network participation.
Furthermore, Cardano processed 797,000 transactions in June 2025, down from 2.8 million in December 2023—a substantial reduction in blockchain activity and utility.
While some analysts remain bullish about Cardano due to technological progress such as the Hydra scaling solution and expanding DeFi adoption, others cite regulatory uncertainty and stiff competition from other smart contract platforms like Ethereum and Solana as headwinds that weigh on ADA’s price.
Despite these challenges, there is some optimism. Wallets holding between 1 million and 10 million ADA tokens have increased their holdings recently, suggesting expectations for a future recovery. This accumulation by large holders, often referred to as "whales," could be a positive sign for the future of Cardano.
Anticipated events such as the Midnight airdrop and scaling improvements with Hydra contribute to positive sentiment among the community. The ongoing ADA accumulation may be due to the upcoming Midnight airdrop, which could potentially boost the price.
However, the price movement could also be an inverse cup-and-handle pattern, a continuation sign. If this is the case, a drop below the support at $0.519 will confirm the pattern and suggest more downside. The handle section is currently forming.
It's worth noting that Cardano has remained below the 50-day and 100-day moving averages, a technical indicator that suggests a bearish trend. However, the signs of whale accumulation and upcoming developments could potentially lead to stabilization or growth, depending on how these events unfold.
In summary, Cardano's recent price drop reflects ecosystem headwinds including reduced DeFi activity, network slowdown, and competitive/regulatory factors. However, technical progress and whale accumulation point to potential for stabilization or growth depending on future developments.
- The total value locked (TVL) in Cardano's decentralized finance (DeFi) ecosystem has dropped nearly 20%, indicating reduced use and adoption of its DeFi projects.
- Large holders, often referred to as "whales," have been accumulating ADA tokens, suggesting expectations for a future recovery.
- Wallets holding between 1 million and 10 million ADA tokens have increased their holdings recently, a potential positive sign for the future of Cardano.
- Despite the current bearish trend, anticipated events such as the Midnight airdrop and scaling improvements with Hydra contribute to positive sentiment among the Cardano community. This accumulation and upcoming developments could potentially lead to stabilization or growth.
