Cardano (ADA) Sees Sharp Drop in Network Activity and User Engagement as Technical and On-Chain Weakness Weigh on Price Outlook
Cardano (ADA) has experienced a significant shift in its network dynamics over recent months. While earlier milestones showcased robust network activity, such as 840,000 transactions and strong adoption metrics, recent data as of June 2025 indicate a pronounced downturn. Daily active addresses have plunged to 9,039, an 87% fall from April’s peak of 71,000, signaling sharp declines in user engagement and overall demand. This contraction coincides with a steep drop in ADA’s 30-day Market Value to Realized Value (MVRV) ratio—from +240% to +21.32%—pointing to diminished short-term profitability for holders. Mid-sized investors (1M–10M ADA) have gradually reduced their positions, while only the largest addresses showed slight accumulation, reflecting a redistribution phase without renewed bullish conviction. Additionally, development activity—a former highlight for Cardano—has hit its lowest point in over a year. Technically, ADA remains trapped in a narrow range ($0.66–$0.67) below key moving averages, showing a bearish market structure and limited breakout potential barring a resurgence in volume or demand. In contrast, competing blockchains like Solana (SOL) have achieved notable gains in user activity during the same period. Unless Cardano’s network activity and development momentum recover, the outlook suggests ADA’s price may remain range-bound with limited upside for traders in the near term.
Bearish
Recent developments indicate clear weakness in the Cardano (ADA) ecosystem. The steep decline in daily active addresses and a sharp reduction in the MVRV ratio signal lower user engagement, fading demand, and reduced short-term profitability for ADA holders. The drop in development activity, historically a Cardano strength, further increases concerns regarding network vitality and future adoption. The ongoing selloff by mid-tier holders, minimal accumulation by large accounts, persistent technical resistance, and lack of volume point to sustained bearish sentiment. Without a rebound in network engagement or development, ADA likely faces continued range-bound trading with limited upside. These indicators collectively suggest a bearish outlook for ADA in both the short and long term.