Cardano [ADA] is facing challenges with declining user and derivatives market activity, raising questions about its long-term significance.
Cardano's User Activity Shows No Recovery
Since March 6, Cardano’s daily active addresses have flatlined around 10K, showing no signs of growth despite short-term price increases. This stagnation indicates a struggle to attract new and returning users. Without increased network activity, ADA faces challenges in proving its real-world utility and adoption.
Derivatives Market Signals Weak Trader Sentiment
Cardano’s derivatives market is echoing bearish sentiment as Open Interest in ADA Futures has fallen by nearly 30% since March 3. The figure has dropped from $1.2 billion to under $900 million, reflecting traders’ growing reluctance to take leveraged positions on ADA. Concerns are further supported by a consistently negative funding rate across major exchanges like Binance and Bybit, with several dips below -0.10%.
A Broader Market Shift Leaves ADA Behind
Cardano’s difficulties are not isolated, as capital shifts to sectors like Base, memecoins, and AI tokens. Similar patterns have occurred before with short-lived spikes in Total Value Locked (TVL) and user engagement. Without an immediate catalyst beyond partner chains and slow DeFi integrations, Cardano risks becoming a legacy chain struggling to keep pace with faster-moving rivals.
Once a retail favorite, Cardano is now facing increasing doubts about its long-term relevance. Network demand, developer engagement, or a significant fundamental catalyst could help reposition Cardano before it gets sidelined.
