- Cardano’s price decline is coupled with stagnant engagement from users and a cooling market for derivatives.
- As the market moves towards faster and newer assets, ADA’s relevance is declining.
Cardano [ADA] is slipping — and not just in price. In the last week the network lost over 9%, but the most telling thing is that the number of active daily addresses have remained the same, even though other altcoins are showing signs of recovery.
Data shows a lackluster performance from Open Interest and funding rates, which points to a larger problem. There is a decline in user engagement, and traders are less confident, leading them to question the relevance of ADA within the Layer 1 environment.
Cardano network usage shows no sign of life
Despite ADA’s sharp 9% week drop, the most troubling sign lies elsewhere Cardano’s on-chain stagnation.
As the chart shows, daily active addresses have hovered near the 10K mark since the 6th of March — failing to rebound even during brief price upticks.
This flatline in user activity suggests that network participation isn’t just cooling off — it’s plateauing.
Santiment
Cardano engagement metrics are stuck. This is a sign of a lack in organic demand.
This trend is alarming because it shows no sign of an increase in users or new ones.
Open Interest drops, bearish bets grow
Coinglass
Cardano’s derivatives markets are signaling an alarming decline in confidence among traders. The Open Interest for ADA Futures is down by 30% from the 3rd March. From over $1.2billion to just under $900m.
The ADA has seen a significant drop in price. This is due to traders becoming more reluctant to enter into leveraged transactions.
Coinglass
What’s more, Funding Rates Binance, Bybit and other major exchanges have all been consistently in the red with many drops below -0.10%.
The traders pay a premium for maintaining bearish positions.
Together, the drop in Open Interest and persistent negative Funding Rates reveal a market leaning more toward defense than recovery — casting doubt on ADA’s near-term upside.
Futures data paints a cautious picture
Cardano’s derivatives is starting to show signs of exhaustion.
Open Interest in ADA Futures has dropped from over $1.2 billion on the 3rd of March to under $900 million, while Funding Rates across Binance and Bybit remain deeply negative — evidence of sustained short pressure.
It’s not just about ADA.
As capital moves into Base, AI tokens, and memecoins, ADA’s drift sideways feels systemic. Cardano is no stranger to this: unsustainable spikes in TVL, user activity and TVL.
With no major catalyst imminent — aside from the coming partner chains initiative and slow DeFi integrations — ADA risks becoming sidelined.
Cardano was once the darling of retail, but now it appears that they are struggling to retain relevance in an industry obsessed with novelty and speed.
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Source: ambcrypto.com
