Cardano (CRYPTO:ADA) is enduring one of the most challenging periods in its history in 2025 after its market capitalisation collapsed by 64%, erasing roughly $25 billion in value and reducing its valuation to about $14 billion.
The sharp decline marks a dramatic reversal for a project once viewed as a stable long-term contender within the cryptocurrency sector.
Market data shows ADA’s price has fallen by around 50% from its 2025 high near $0.80, breaking through key technical support levels.
Analysts attribute the downturn in part to aggressive selling pressure from large holders, with an estimated 120 million ADA sold by whales over a two-month period.
Technical indicators have weakened significantly, reinforcing bearish sentiment and accelerating the sell-off across spot markets.
Network activity has also deteriorated, with active addresses dropping from approximately 93,000 during the election period to fewer than 25,000 in recent weeks.
This steep fall in user participation suggests a broader disengagement from retail and smaller investors, intensifying downward pressure on the token.
Structural challenges are compounding Cardano’s problems, as its Total Value Locked remains well below that of newer competitors despite its relatively high market capitalisation.
The gap between valuation and on-chain usage has raised concerns about adoption and the real economic activity supported by the network.
Unlike previous cycles, ADA has failed to generate strong Fear of Missing Out sentiment, limiting speculative inflows that often fuel recoveries.
Competition within the sector continues to intensify, with rival networks gaining attention and narrowing the gap in market rankings.
Bitcoin Cash (CRYPTO:BCH) has emerged as a notable challenger, steadily closing in on Cardano’s position among the top cryptocurrencies by market value.
Market observers note that weak fundamentals, including declining engagement and subdued investor confidence, are constraining any near-term rebound.
Looking ahead to 2026, analysts outline two diverging paths, with recovery dependent on renewed adoption, stronger partnerships, and improved liquidity metrics.
Others warn that if current trends persist, Cardano risks a prolonged decline that could ultimately see it pushed out of the top tier of digital assets.
Despite differing expert views, there is broad agreement that 2025 represents a decisive turning point for Cardano’s future in the crypto market.
At the time of reporting, Cardano price was $0.3675.