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.