Cardano Price Prediction as TVL and Network Fees Continue to Decline

Key Insights

• Cardano price has formed an ascending channel in the past few months.
• The total value locked in Cardano has continued falling this month.
• The network fees and stablecoin supply remain under pressure.

Cardano price remained above its June low as ADA attempted another recovery in early September. However, network metrics continued showing limited activity compared with larger smart-contract platforms.

ADA traded near $0.22 on Sept. 7 after recovering from its June low. TradingView recorded that low near $0.1381 on June 25.

The recovery came as Cardano’s decentralized finance activity remained relatively subdued. That divergence left the recent price rebound exposed to renewed selling pressure.

ADA token has dropped by over 80% from its highest point last year. This retreat has coincided with the crypto winter, which has affected Bitcoin and most altcoins.

The winter has affected the network’s growth and turned it into a ghost chain. A ghost chain is a network that has no activity, which is what Cardano is. Many years after its launch, there are no mainstream decentralized applications (dApps) in the network.

The total value locked (TVL) has dropped to over $65 million, its lowest level since 2023. This amount is much lower than the all-time high of over $700 million. Most notably, it has been overtaken by Robinhood Chain, which was launched in July. The chain has attracted hundreds of dApps and has close to $1 billion in TVL and stablecoin supply, each.

The biggest dApps in the network, like Minswap, Liqwid, Dano Finance, Splash Protocol, and Indigo, are not used widely. This is unlike top dApps like Uniswap, PancakeSwap, Hyperliquid, and Aave, which are on Ethereum and other chains.

More data shows that the stablecoin supply remains at just $64 million. While this is an increase from where it was last year, it is a tiny amount in an industry with over $300 billion in assets. Indeed, Cardano has been overtaken by chains like Robinhood Chain and Arbitrum.

The same trend is happening in other areas. Cardano has a limited market share in the real-world asset (RWA) sector, which has emerged as a major segment of the crypto industry.

As a result, the network is not making any money, especially for a cryptocurrency valued at over $8.2 billion. As the chart below shows, the network has made just over $87,000 this quarter, down from $164,000 in the previous quarter. At its peak, Cardano was generating over $1.79 million per quarter.

These numbers explain why Cardano has seen little traction among retail and institutional investors. For example, no major company has applied for a spot Cardano ETF despite its popularity and its large market cap. Instead, there are now ETFs on coins like Zcash, Hyperliquid, Dogecoin, and Litecoin.

Meanwhile, the daily volume of ADA has dropped to about $480 million, lower than other coins, including Zcash and XRP. The same is happening in the futures market, where open interest has continued to fall.

The daily chart shows that the ADA token has formed an ascending channel in the past few months. This channel resembles a rising wedge, a common bearish reversal pattern. This pattern is also forming after a big drop, a sign that it is a bearish flag pattern.

The coin remains below the 100-day and 200-day Exponential Moving Averages (EMA), a sign that bears remain in control. The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have formed a bearish divergence pattern.

Therefore, the token will likely continue to fall, potentially reaching the key support level of $0.1362, its lowest level in June. A drop below that level will indicate further downside toward $0.100.

This article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency markets remain highly volatile. Readers should conduct independent research and assess their financial circumstances before making investment decisions.

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