The cryptocurrency market has been experiencing a significant correction, and Cardano (ADA) is no exception. As the price of ADA continues to decline, the derivatives market is also feeling the impact, with traders adjusting their positions in response to heightened volatility. According to the official information, the open interest in Cardano has seen a notable collapse, reflecting the uncertainty among investors.
Cardano's Price Decline
Cardano's price has fallen to as low as $0.22, a stark reflection of the broader market trends. According to market expert Joao Wedson, the open interest for ADA has seen a dramatic drop from approximately $1.6 billion to just $334 million. This decline indicates that many traders are unwinding their leveraged positions as they navigate the current market uncertainty.
Shifts in Open Interest Dominance
Additionally, the dominance of Binance in ADA's open interest has significantly decreased, falling from over 80% in 2023 to a mere 22% in 2026. In contrast, Gate.io has emerged as the leading platform with a 31% share. This shift in market dynamics suggests a fragmentation of open interest, which could potentially weaken the price momentum for altcoins like Cardano in the near future.
Amid the ongoing selling pressure in the cryptocurrency market, Cardano's ADA is facing challenges despite institutional interest. For more details on this situation, see further insights.
