Why Is Cardano Price Dropping Today on August 10, 2025?

Cardano’s value is facing tough times right now, with fading user engagement and strong barriers to any upward movement pushing ADA lower, as sellers eye a slide toward $0.51. Imagine your favorite stock that’s been on a roll suddenly hitting a wall— that’s what’s happening with Cardano (ADA) today. On August 10, 2025, ADA has slipped another 3.2% in the past 24 hours, trading at around $0.612. This extends a rough patch, with a 8% drop over the last week and a steep 50% fall from its peak of $1.22 back on March 15, 2025.

Looking at the daily chart for ADA against the US dollar, it’s clear the momentum has shifted downward, much like a runner losing steam midway through a race. Several elements are fueling this dip in Cardano’s price, from shrinking activity on the network and falling total value locked to pessimistic signals in futures trading and a shaky technical setup.

Weakening Activity Across the Cardano Network

The current bearish vibe surrounding ADA’s price stems from a noticeable slowdown in how people are using the Cardano blockchain, paired with a sharp decline in the total value locked, which has tumbled significantly in recent weeks. Think of it like a bustling city street that suddenly empties out—fewer people means less energy and vibrancy.

For instance, the number of daily active addresses on Cardano has plunged by about 65% from a high of 68,500 on July 1, 2025, to just under 24,000 as of August 10. In a similar vein, the count of daily transactions has dropped by over 68% during this timeframe. These figures, drawn from reliable blockchain analytics, paint a picture of reduced interest and participation.

Adding to this, Cardano’s total value locked has shrunk from $512 million on July 5 to $302 million today, marking another 12% dip in the past week alone. This TVL metric, which tracks the assets committed to Cardano’s decentralized apps, mirrors the broader retreat in ADA’s value, suggesting that as fewer users lock in their funds, the ecosystem feels the pinch, much like a savings account that’s no longer attracting deposits.

Bearish Signals in ADA’s Futures Market

Compounding the pressure on Cardano’s price is the lackluster vibe in its derivatives scene, where open interest remains low and funding rates signal ongoing pessimism. It’s like betting on a horse that’s fallen out of favor— the odds just aren’t stacking up for the bulls.

A key indicator here is that ADA’s funding rates have lingered in negative territory for the past five weeks, meaning those shorting the asset are essentially compensating longs to maintain their positions. This setup underscores a market dominated by bears, backed by data from derivatives tracking platforms showing consistent negative rates since early July 2025.

On top of that, the total open interest for ADA perpetual futures across leading exchanges has hovered below $950 million since July 10, far from the $1.45 billion high seen in February 2025. When open interest stalls like this, it’s historically tough for prices to climb, as there’s simply not enough fresh capital or excitement fueling the fire. For Cardano, this could spell trouble, where even a small wave of selling might snowball into bigger drops if leveraged trades get squeezed. Without a spark from big players or everyday traders, ADA risks further slides.

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Technical Indicators Not Favoring Cardano Bulls

This ongoing slump in ADA is tied to a broader downward trend that kicked off when it bounced off a key resistance area, as visible on the charts. It’s reminiscent of trying to push a boulder uphill only to watch it roll back—frustrating but telling.

From July 15 to August 5, 2025, ADA’s price oscillated between the 50-day simple moving average and the 200-day SMA, with recoveries repeatedly blocked by the 50-day line now sitting at $0.732. Each push upward invited more sellers, building that resistance wall. Then, on August 6, it broke below the 200-day SMA at $0.712, turning what was once support into a hurdle.

Eyes are now on the next potential floor at the $0.58 psychological mark. If that gives way, the focus shifts to the range between $0.562 (hit on June 20, 2025) and the $0.519 low from December 2024. This all ties into a bigger picture where Cardano’s strengths, like its research-driven approach and focus on scalability, shine brighter when compared to more hype-driven chains—think of it as the steady tortoise in a race full of flashy hares, backed by real-world adoptions in areas like decentralized identity.

Lately, Google searches are buzzing with questions like “Is Cardano a good investment in 2025?” and “Why is ADA price falling?”, reflecting widespread curiosity amid the dip. On Twitter, discussions are heating up around Cardano’s upcoming upgrades, with a recent post from the official Cardano account on August 8, 2025, announcing progress on their Hydra scaling solution, sparking debates on whether this could reverse the trend. Community voices are mixed, with some highlighting a 15% rise in developer activity per recent GitHub metrics, offering a glimmer of hope against the current headwinds.

This piece isn’t meant as financial guidance—every trade carries risks, so dive into your own analysis before jumping in.

Frequently Asked Questions

Why has Cardano’s user activity dropped so much recently?

Cardano’s daily active addresses and transactions have declined sharply due to broader market caution and competition from other blockchains, leading to less engagement as users wait for clearer signals or upcoming updates.

What does negative funding rates mean for ADA’s price?

Negative funding rates indicate that short sellers are dominant, paying to keep their positions open, which often pressures prices downward by reflecting bearish sentiment in the derivatives market.

Is now a good time to buy Cardano despite the dip?

It depends on your risk tolerance and research; while technicals suggest caution, Cardano’s strong fundamentals like its proof-of-stake model could offer long-term value, but always consider market volatility.