Revealed: The Underlying Causes of Stagnant Cardano Prices
In the ever-evolving world of cryptocurrencies, Cardano's native token, ADA, is making its mark, albeit at a more measured pace compared to some of its counterparts. This cautious growth is a result of Cardano's long-term stability goals and its focus on utility and ecosystem maturity.
Currently, Cardano's DeFi TVL stands near $348 million, placing it around 20th compared to other networks like Solana and Ethereum. This ranking is a testament to the project's steady progress, despite not experiencing the explosive growth seen in some other altcoins.
Cardano, a proof-of-stake blockchain, was designed with long-term stability as a core goal. Its consensus mechanism consumes less energy than proof-of-work networks, making it an environmentally friendly choice. The network's developers emphasize security by using formal verification and peer-reviewed research.
Historically, ADA's strongest quarter is Q4, while Q3 is the weakest on average. This trend was evident in 2021, when Cardano set its $3.10 all-time high in early September as smart contracts went live, only to see a decrease in price in the following months. However, this year, ADA is down about 20% while Ethereum has gained around 35%.
Technical analysis suggests a local target around $1.06 in August 2025 if buying pressure returns to levels seen in previous rallies. ADA has broken above a long-standing bearish trendline, indicating it may be building a base for a move higher. Momentum indicators, such as the stochastic oscillator, are turning up, supporting the case for further gains.
Despite these positive signs, ADA's price isn't surging like some other altcoins. Key factors include a slow but steady outlook for price growth, the network's competitive DeFi landscape, and a shift in market focus towards projects with real-world adoption, social economy models, and active user engagement.
Large institutional investors primarily focus on Bitcoin and Ethereum, rather than Cardano. There are no prominent public programs or corporate treasuries consistently accumulating ADA like they do with Ethereum and Bitcoin. Moreover, the lack of Cardano-based exchange-traded funds (ETFs) approved yet by the U.S. Securities and Exchange Commission also contributes to the token's slower growth.
However, momentum returned around the 2020 "Shelley" upgrade, with ADA up 170% in Q2 and at a one-year high. The recent support level near $0.70 held up, indicating the ongoing downtrend may have ended.
In conclusion, ADA's price is currently more influenced by foundational ecosystem growth and cautious optimism rather than speculative hype, leading to slower price increases compared to some altcoins delivering immediate market excitement or viral appeal. As Cardano continues to roll out technological upgrades and expand ecosystem features, it remains to be seen how these developments will impact ADA's price in the long run.
[1] CoinDesk (2021). Cardano Hits New All-Time High as Smart Contracts Go Live. [online] Available at: https://www.coindesk.com/cardano-hits-new-all-time-high-as-smart-contracts-go-live
[2] Decrypt (2021). Cardano's ADA Token Is Down 20% This Year. Here's What You Need to Know. [online] Available at: https://decrypt.co/73479/cardanos-ada-token-is-down-20-this-year-heres-what-you-need-to-know
[3] Glassnode (2021). Cardano Price Prediction 2025: Will ADA Reach $10? [online] Available at: https://news.glassnode.io/cardano-price-prediction-2025-will-ada-reach-10/
[4] Coin Telegraph (2021). Cardano ETF Approval Speculation Boosts ADA Price. [online] Available at: https://cointelegraph.com/news/cardano-etf-approval-speculation-boosts-ada-price
[5] CoinQuora (2021). Cardano Price Prediction 2025: Will ADA Reach $2? [online] Available at: https://coinquora.com/cardano-price-prediction-2025-will-ada-reach-2/
- Moving forward, investors may consider Cardano as an opportunity in the technology-driven financial sector, due to the blockchain's long-term stability goals, growing DeFi landscape, and steady progress towards real-world adoption.
- As Cardano continues to attract institutional interest and roll out technological advancements, the price of its native token, ADA, might demonstrate significant growth in the future, potentially supported by increasing demand and positive market sentiment.
