Cardano (ADA) Drops 7% as Market Slips, But On-Chain Metrics Show Strength

Cardano (ADA) faced a sharp downturn over the weekend, falling over 7% alongside a broader cryptocurrency market decline. Bitcoin’s significant drop triggered widespread sell-offs, with over $500 million in bullish positions liquidated in the past 24 hours. ADA dropped 3.76% during that period, reaching approximately $0.76, according to TradingView.

Despite the pullback, ADA trading volume surged to $1.2 billion, signaling sustained investor interest. If the decline continues, analysts warn ADA could fall to its 50-day simple moving average at $0.69 or further down to the $0.60 support level. However, a rebound above $0.75 could fuel bullish momentum, potentially lifting the token toward $0.86 or even the $1.01 mark.

Recent data from Messari reveals that Cardano's ecosystem is growing. In Q1 2025, the stablecoin market cap on Cardano rose 30% to $30.1 million. Meanwhile, average transaction costs increased 27% to $0.29, and transaction fees in ADA climbed 1% to 0.34 ADA. The network’s treasury, crucial for funding development, holds 1.7 billion ADA—a 5% quarterly increase—though its USD value dropped 19% to $1.1 billion due to price fluctuations.

Governance on Cardano also took a leap forward with the Plomin upgrade via CIP-1694, onboarding 1,220 decentralized representatives (DReps). The upgrade enables more community control over treasury allocation, including the 20% of transaction fees directed to it.

With upcoming advancements like the Ouroboros Leios protocol for faster block finality, the privacy-focused Midnight sidechain using ZK-proofs, and the potential approval of a Grayscale ADA ETF, Cardano remains a blockchain to watch—even amid current volatility.