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Title: Is Cardano (ADA) Becoming a Poor Man’s Chain? Retail Holds the Bag as Whales Exit
The crypto market is known for its unpredictability, and it seems that Cardano (ADA) has recently been plagued by several concerning trends. The latest data reveals that whales are leaving Cardano, while retail investors are buying in en masse. This shift could be a sign of a significant change in the network’s dynamics.
According to IntoTheBlock, wallets holding large amounts of ADA have been declining since 2022. On the other hand, the number of wallets holding between $100 and $1,000 in ADA has surged. This stark contrast raises important questions about Cardano’s ability to attract and retain institutional investment and support. The absence of whales from the network could potentially hinder its development, as they typically provide significant funds for the growth and evolution of a blockchain.
Furthermore, Cardano’s DeFi activity is on a downward trajectory. Data from DeFiLlama reveals that the total value locked (TVL) in DeFi has decreased by 56% since March 2025. This drastic drop signifies a loss of trust and confidence in the network’s Web3 features, including trading, NFT minting, or using decentralized applications.
Another red flag is Cardano’s declining developer participation. The numbers from Santiment show that ADA’s development contributors have fallen to 103 as of July 10, which represents an astonishing 58.8% decline since 2022. This trend is alarming because it indicates that the network may not be receiving the necessary updates or innovations.
In contrast, Ethereum’s daily active addresses are significantly higher than Cardano’s at 469,431 and 35,982 respectively. This stark disparity highlights the significant gap between the two platforms in terms of user engagement and retention.
Additionally, technical indicators suggest that ADA might not continue its upward momentum for long. The asset has been rejected at $0.772, a strong resistance level, which could be an indication that the rally is about to end. Furthermore, the Relative Strength Index (RSI) hit 83.6, signaling potential overbought conditions and a possible correction.
ADA needs to stay above $0.711 to avoid plummeting down to $0.60. If it can manage to move higher, the next resistance levels are set at $0.836 and $0.866.
Lastly, the dominance of retail investors poses a significant issue for the network’s future prospects. The lack of institutional investment could lead to instability due to sudden sell-offs and decreased user retention.
In conclusion, Cardano appears to be shifting towards a retail-dominated market, which raises important questions about its long-term viability as a blockchain platform.
Source: coinchapter.com
