Cardano’s ADA token is navigating one of its most severe capitulation phases in recent years. The cryptocurrency’s price has been driven down to $0.35, a level representing a yearly low, as on-chain data reveals a wave of realized losses exceeding $900 million in December 2025. Against this backdrop of selling pressure, the launch of a new native token provides a rare point of activity for the ecosystem.
A Glimmer of Network Activity
A significant development emerged on December 4, 2025, with the minting of the Midnight project’s NIGHT token on the Cardano blockchain. Its public launch on December 8 immediately generated substantial network usage, triggering over 131,000 transactions. Notably, the event attracted unprecedented exchange support, as major platforms including Binance, Bybit, and OKX listed the Cardano-native token shortly after its debut—a first for the ecosystem.
The Midnight initiative focuses on data protection through zero-knowledge proofs and programmable privacy. Following the NIGHT token introduction, average trading volumes on Cardano-based decentralized exchanges surged by two to threefold, indicating heightened network utility even as token prices declined.
On-Chain Metrics Paint a Bleak Picture
The underlying data reveals the scale of the sell-off. Since the start of the month, ADA investors have locked in realized losses surpassing $900 million. The Market Value to Realized Value (MVRV) ratio indicates that holders who purchased ADA within the past year are now sitting on an average unrealized loss of 40%.
Large holders have significantly contributed to the downward momentum. Wallets containing between one and ten million ADA collectively reduced their positions by 130 million tokens. Over the preceding two months, these major addresses—often called “whales”—divested a total of 120 million ADA, a period that coincided with a roughly 50% price drop from its high near $0.80.
The current valuation of $0.35 marks a 64% decline since the beginning of the year. Compared to its price near $0.97 in December 2024, ADA has shed nearly 64% of its value.
Technical and Market Position Under Strain
From a chart perspective, Cardano is testing resistance at the $0.37 level, which aligns with the upper boundary of a prevailing downward channel. The 20-day moving average has consistently acted as a stubborn ceiling since mid-October.
Should investors sell immediately? Or is it worth buying Cardano?
The next critical support level to watch lies at $0.34. A decisive break below this threshold could open the path for a move toward the $0.29 to $0.30 range. Momentum indicators reflect the ongoing pressure: the Relative Strength Index (RSI) remains in negative territory, while the Stochastic Oscillator is attempting to recover from oversold conditions.
Caution prevails in derivatives markets. Open interest for Cardano futures contracts has stagnated around $657 million, suggesting traders are awaiting clearer directional signals before committing.
Cardano currently holds the tenth position by market capitalization, valued at approximately $14 billion. However, its lead over Bitcoin Cash in eleventh place is narrowing. Throughout 2025, Cardano’s market valuation has diminished by about $25 billion.
The ecosystem’s decentralized finance (DeFi) footprint, measured by Total Value Locked (TVL), remains modest at $180 million. This figure lags far behind competitors like Solana, which commands a TVL of $8.7 billion. Cardano’s stablecoin presence is also limited, with a total of $38 million, highlighting an area for potential growth.
Amidst the challenges, there are pockets of adoption. In India, ADA ranks among the top ten most-held cryptocurrencies, positioning it ahead of both Solana and Polygon in that market.
The weeks ahead will be crucial in determining whether the $0.34 support level holds. Market participants are also watching to see if technological advancements like the Midnight project can attract fresh capital. The next phase of community innovation is set to begin on January 2, 2026, with the voting period for Project Catalyst Fund 15, which will evaluate 761 submitted proposals.
Ad
Cardano Stock: Buy or Sell?! New Cardano Analysis from December 21 delivers the answer:
The latest Cardano figures speak for themselves: Urgent action needed for Cardano investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 21.
Cardano: Buy or sell? Read more here...
