🔵 Cardano price crashed 60% in 2025: will $ADA rebound in 2026?

Cardano price has crashed by nearly 60% this year, lagging behind other cryptocurrencies like Bitcoin and Ethereum. It crashed to a low of $0.3512 on Tuesday, down sharply from the year-to-date high of $1.3245. This article explores some of the top reasons why the ADA price crashed in 2024 and potential catalysts to watch.

🔸 Reasons why Cardano price crashed in 2025

There are a few reasons why the Cardano price crashed this year. First, the decline coincided with the ongoing crypto market crashthat affected Bitcoin and other altcoins.

Bitcoin dropped by 6.5% this year, while Ethereum plunged by 11% during the year. Additionally, the market capitalization of all tokens dropped by 8.10% this year. This explains why Cardano token plunged as the industry has a close correlation with each other.

Second, ADA price dropped as concerns about its ecosystem continued. Data compiled by DeFi Llama shows that the total value locked (TVL) in its network dropped to below $250 million, making it much smaller than other popular networks like Monad and Katana.

More data shows that Cardano does not have a market share in the fast-growing real-world asset (RWA) tokenization industry that has accumulated nearly $20 billion in assets. As a result, concerns that Cardano is a ghost chain remained for the most part of the year.

Third, Cardano declined as it was passed over by most institutional investors who filed an application for altcoin ETFs. Only Grayscale filed for a spot ADA ETF, with other top companies like 21Shares, BlackRock, Canary, and VanEck remaining on the sidelines.

Additionally, the token crashed this year after the huge liquidation event that happened on October 10, as nearly 2 million traders were liquidated. As a result, most Cardano investors have deleveraged, with the futures open interest falling from over $1.95 billion in September to the current $646 million today.

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