Cardano (ADA) has experienced a significant downturn, losing over 70% of its value in the past year. In 2024 alone, the cryptocurrency has shed 30% of its value, with multiple attempts to surpass the $0.25 level failing.
Whale Accumulation
Despite the price decline, millionaire ADA wallets have been steadily accumulating the asset, suggesting that some large holders remain active. Wallets holding at least 1 million tokens have collectively increased their holdings to 25.11 billion ADA. According to Santiment, this is the highest level recorded since December 2017. These wallets now control 67.5% of the total ADA supply, the highest concentration since July 2020.
Santiment noted that this accumulation by large holders is generally seen as a sign of confidence from key stakeholders. As a long-term indicator, the trend could be viewed as bullish for patient investors.
Ecosystem Concerns
The renewed accumulation comes as Cardano continues to face concerns regarding its ecosystem growth. Critics argue that the network has struggled to achieve the same level of traction as its competitors. Crypto analyst Ali Martinez recently questioned Cardano’s long-term strength, citing the network’s relatively low activity compared to its multibillion-dollar valuation.
Martinez pointed out that Cardano’s DeFi ecosystem has never surpassed $1 billion in total value locked and lags behind rivals like Ethereum, while newer chains such as SUI have already seen stronger usage. He also noted that Cardano has yet to establish a clear niche that consistently attracts developers, users, and capital. Martinez added that the blockchain’s research-focused approach has slowed feature rollouts. Other market experts have also expressed skepticism about whether Cardano is overvalued.
According to DeFiLlama, Cardano’s TVL has fallen below $125 million, down 82% from nearly $721 million in November 2024.
Technical Analysis
Trader ‘Val Me’ described Cardano’s chart as “very sad looking,” noting that ADA remains weak on the higher time frame despite trading near a crucial support zone around $0.22. She suggested the asset could either bounce from current levels or briefly break the equal lows before recovering. The analyst identified a possible move toward $0.50, though she suggested that the rally could simply form a lower high before a retest of the support zone.
She added that only if ADA later holds a higher low would she consider a more bullish scenario, which projects a potential move toward $1.35. However, she stressed that such a scenario is still unlikely at this stage.
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