$ADA 🚨Reasons why Cardano price crashed in 2025🚨
There are a few reasons why the Cardano price crashed this year. First, the decline coincided with the ongoing crypto market crash that affected Bitcoin and other altcoins.
Bitcoin dropped by 6.5% this year, while Ethereum plunged by 11% during the year. Additionally, the market capitalization of all tokens dropped by 8.10% this year. This explains why Cardano token plunged as the industry has a close correlation with each other.
Second, ADA price dropped as concerns about its ecosystem continued. Data compiled by DeFi Llama shows that the total value locked (TVL) in its network dropped to below $250 million, making it much smaller than other popular networks like Monad and Katana.
More data shows that Cardano does not have a market share in the fast-growing real-world asset (RWA) tokenization industry that has accumulated nearly $20 billion in assets. As a result, concerns that Cardano is a ghost chain remained for the most part of the year.
Third, Cardano declined as it was passed over by most institutional investors who filed an application for altcoin ETFs. Only Grayscale filed for a spot ADA ETF, with other top companies like 21Shares, BlackRock, Canary, and VanEck remaining on the sidelines.
Additionally, the token crashed this year after the huge liquidation event that happened on October 10, as nearly 2 million traders were liquidated. As a result, most Cardano investors have deleveraged, with the futures open interest falling from over $1.95 billion in September to the current $646 million today.
Cardano price also plunged as the enthusiasm that Charles Hoskinson built earlier this year faded. For example, he predicted that Cardano would attract Chainlink as a partner, which did not happen.
His hints on integrating Bitcoin DeFi in Cardano did not work out. Most importantly, his meeting with a top ‘VIP’ did not amount to any deal.
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