Cardano's ADA token plunged about 15% in 24 hours to near $0.16 on Tuesday, hitting its lowest price since November 2020. The selloff pushed the cryptocurrency's market capitalization below $6 billion and knocked it to 17th place among digital assets by market cap. More than $1.1 billion worth of ADA changed hands during the slide, marking a sharp escalation in selling pressure.
Steep weekly decline and long-term losses
ADA lost roughly 30% of its value over the past week alone. The token now sits about 95% below its all-time high of $3.09, set in September 2021. Trading volumes surged past $1.1 billion as investors rushed to exit positions, amplifying the downward move.
Ecosystem projects and leadership turmoil
The price rout comes alongside a series of setbacks in Cardano's ecosystem. Analytics platform TapTools announced it would wind down within two weeks after losing five senior executives in 2023, including both co-founders. Leading NFT marketplace JPG.Store shut down in May 2023. Cardano founder Charles Hoskinson stepped back from public engagement, citing online toxicity. A failed community vote also forced the cancellation of the Cardano 2026 summit.
Foundation CEO urges focus on long-term work
Cardano Foundation CEO Frederik Gregaard urged investors not to fixate on short-term price action. He pointed to ongoing ecosystem development, including on-chain governance mechanisms, expanding decentralized finance projects, real-world asset tokenization, and a program linked to 20,000 farmers in India. Gregaard's comments did little to stem the selloff, but trading data suggests some users may be positioning for a rebound.
Search interest spikes, active addresses rise
Search interest in the term 'ADA price' jumped 73% since late May, indicating heightened public attention. Meanwhile, the number of active addresses on the Cardano network rose during the price dip, a pattern that sometimes signals accumulation. Whether that activity is driven by bargain hunters or by users interacting with DeFi protocols ahead of potential upgrades remains unclear.
The token's slide below $0.16 erases gains built up over more than three years. With TapTools set to close its doors within two weeks and no major catalyst on the horizon, the next test for Cardano will be whether its real-world adoption efforts can offset the damage from executive departures and declining NFT marketplace activity.
