Monday’s trading session delivered a sharp blow to Cardano’s ADA token, which recorded its most severe single-day decline since October 2025. The asset’s value plummeted, creating a stark contrast with a simultaneous surge in derivatives activity—a dynamic that has captured market attention.
Futures Volume Skyrockets as Price Tumbles
Within a matter of hours, ADA’s price briefly dropped to $0.345, representing a loss exceeding 12%. This sell-off reduced Cardano’s total market capitalization to approximately $13.5 billion. Counterintuitively, this price collapse coincided with explosive growth in futures trading. Data from BitMEX revealed a staggering increase of over 1.2 million percent in futures volume, which reached $624.5 million. Spot trading volume also saw a significant uptick of 187%, indicating substantial repositioning by traders.
Market metrics paint a clear picture of prevailing sentiment. Negative funding rates on derivatives platforms show that short positions are dominant and are paying funding to longs. The Relative Strength Index (RSI) sits below neutral territory. Furthermore, ADA’s social dominance has fallen to its lowest point since December, signaling a noticeable decline in interest from retail investors.
Large Holders Accumulate Despite Downturn
On-chain data from late 2025 reveals a counter-narrative developing beneath the surface. So-called “whales”—large investors holding significant quantities of ADA—have been accumulating the asset during this period. Analysis of the Market Value to Realized Value (MVRV) ratio suggests Cardano may currently be undervalued. This activity implies that while smaller investors are pulling back, institutional players and large holders might be positioning themselves for a potential recovery.
A Pivotal Year for Institutional Adoption
The Cardano ecosystem is approaching a critical juncture in 2026, with several institutional milestones on the horizon. Starting February 9, ADA futures contracts are scheduled to begin trading on the CME Group, a major step toward mainstream financial recognition. Additionally, ADA has been included in new ETF filings, such as the proposed Cyber Hornet S&P Crypto 10 ETF.
Should investors sell immediately? Or is it worth buying Cardano?
Technical development continues to advance. The Leios scaling solution is reported to be 83% complete. A new governance proposal aims to increase the storage limits for Plutus smart contracts, which would provide developers with greater flexibility. In a separate development, Google Cloud has launched a Cardano stake pool on the testnet.
Founder Charles Hoskinson has announced ambitions to interconnect Cardano’s DeFi ecosystem with Bitcoin and Ripple in 2026. This proposed “Pentad” structure is designed to bridge liquidity and users across multiple platforms.
Regulatory Landscape Remains a Key Challenge
Regulatory clarity continues to be a mixed picture globally. While Europe is establishing defined rules through its MiCA framework, the regulatory environment in the United States remains uncertain, with the SEC withholding clear guidance. Hoskinson recently publicly criticized Ripple CEO Brad Garlinghouse for his support of a specific U.S. crypto regulatory bill, highlighting deep industry divisions regarding the optimal path forward.
The tension between technological progress and political uncertainty continues to define Cardano’s trajectory. The launch of CME trading on February 9 will be a key test for whether institutional products can inject fresh momentum into the asset.
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