The ecosystem plans to integrate LayerZero and launch the USDCx stablecoin to boost its DeFi sector.
The week began with high volatility in the Cardano ecosystem as retail investors started showing signs of fatigue. Following a correction from $0.44 in January, technical analysts suggest we are in a survival mode scenario while the asset seeks to stabilize near $0.28.
Price fragility is also reflected in the derivatives market, where open interest has dropped to $447 million. Consequently, bearish sentiment prevails among short-term traders, who are facing negative funding rates amidst persistent regulatory uncertainty.
Despite the gloomy outlook, Charles Hoskinson, the network’s founder, warned that these conditions could last for another six months. However, large capital holders are taking advantage of this period of calm, aiming to strengthen their positions for the future.
Pessimism is widespread among small investors, in contrast to whales who are aggressively intensifying their purchases. On-chain data reveals that large-balance wallets have acquired an additional 220 million tokens, indicating strong institutional conviction in the project’s long-term value.
Furthermore, the ecosystem is not slowing down its technological development and seeks to mitigate the lack of liquidity in its decentralized finance (DeFi) sector. The upcoming integration of the LayerZero interoperability protocol and the launch of the USDCx stablecoin are key components for connecting Cardano with other leading networks.
In summary, although the status of Cardano ADA in survival mode raises doubts, accumulation by large holders suggests the formation of a solid floor. ADA’s success will depend on whether these infrastructure improvements can attract real and measurable adoption in the coming months.
