While Bitcoin ETFs trade deep in negative territory and alternative cryptocurrencies face selling pressure, Cardano is undergoing a significant structural transformation behind the scenes. The blockchain has streamlined its governance processes and implemented crucial infrastructure upgrades. Yet, its price lingers near annual lows—even as large-scale investors increase their holdings.
Network Activity Defies Price Weakness
On-chain metrics present a complex narrative. The Total Value Locked (TVL) within Cardano’s DeFi ecosystem has declined to approximately $182 million, a figure substantially below the peak of nearly $700 million seen in late 2024. Stablecoin liquidity, now under $40 million, appears particularly thin.
Contrasting this, the network maintains a robust daily transaction volume of around $533 million. This indicates continued active use, despite an outflow of speculative capital. Concurrently, entities known as “whales”—wallets holding over 10 million ADA tokens—are strategically accumulating. This activity suggests institutional players may view the current price level as an entry point.
Price Action and Technical Perspective
As of December 16, Cardano trades within a narrow band between $0.39 and $0.42. Following a drop of more than 10% roughly a week prior, the token has now stabilized at these lower levels. Its market capitalization stands at about $15 billion.
From a technical standpoint, the $0.38 level acts as critical support. Trading volume remains subdued, pointing to hesitation among retail investors. However, a lack of aggressive selling pressure also signals the market may have absorbed recent shocks.
Should investors sell immediately? Or is it worth buying Cardano?
Governance Overhaul Accelerates Development
Since December, Cardano has operated under its newly established Pentad and Intersect governance framework. This reform is already yielding results: critical protocol upgrades are now approved and deployed at a markedly faster pace. The bureaucratic hurdles of the prior Voltaire era appear to have been overcome.
A key milestone is the integration of the Pyth Network, a high-frequency oracle system providing institutional-grade price data. This infrastructure component is vital for attracting professional DeFi applications. Furthermore, founder Charles Hoskinson is focusing on integrating major stablecoins to address the liquidity shortfall. Interactive Brokers has already facilitated USDC and USDT financing via Zero Hash on the network.
Outlook: Building for the Future
Cardano finds itself in a paradoxical phase. Its token price hovers near yearly lows even as its fundamental infrastructure is being enhanced. The shrinking DeFi liquidity remains a challenge, yet the steady transaction volume and accumulation by major investors reflect confidence in the platform’s long-term trajectory.
Whether the governance reforms and technical integrations will prove sufficient to attract institutional capital will become clearer in 2026. The critical factor will be Cardano’s ability to resolve its liquidity issues—the necessary tools for this task are now in place.
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