Cardano (ADA) is showing signs of stagnation, with price movement capped below $0.70 and network health indicators flashing red. As of June 4, ADA to USDT currently stands at $0.694, while development activity, user participation, and whale movements all point to a cautious market posture.
Cardano Developer Activity Drops Nearly 40%
Data from GitHub-linked tracking shows Cardano’s development activity score has declined to 56.56, down from 92.849 in Q1 2025 — a 39% decrease over the past few months. This sharp fall suggests a retreat in core protocol contributions, coming at a time when investor sentiment is already subdued.
Simultaneously, user activity has followed a similar trajectory. The 7-day active address count dropped to around 112,000, representing a 46% decline from January levels, which peaked above 207,000. On June 4, daily active addresses stood at 23,273, down over 63% from the year’s high of approximately 64,000.
The dual decline in developer engagement and on-chain user activity indicates a broad tapering in ecosystem momentum.
Despite weakening fundamentals, Cardano’s Total Value Locked (TVL) remains relatively stable at $337.59 million, with a 24-hour increase of 6.6%. However, decentralized exchange (DEX) volume is modest, standing at $2.42 million. While TVL suggests capital has not yet exited the ecosystem, transactional and application-level activity remains limited.
ADA Resistance at $0.7077 Holds Firm
On the technical front, ADA remains confined below the $0.70 psychological threshold. Price action shows repeated failures to breach the $0.7077 resistance, marked by the 0.236 Fibonacci retracement level. The Relative Strength Index (RSI) on the 4-hour chart stands at 51, reinforcing a neutral momentum profile.
While ADA did bounce off support near $0.64, buying pressure has failed to follow through. The light trading volume shows limited conviction among bulls and bears alike.
On-chain data reveals mixed behavior among Cardano’s large holders. Wallets in the 1 million to 10 million ADA range have shown slight increases in holdings, hinting at localized accumulation. However, larger wallets — particularly those holding 100 million to 1 billion ADA — have maintained flat balances, showing no clear shift in positioning.
At the same time, mid-tier addresses between 10,000 and 100,000 ADA have reduced their holdings marginally, suggesting caution among more agile investors. The absence of strong movements from top-tier whales reinforces the current lack of directional conviction.
Can Hoskinson’s Regulatory Vision Shift On-Chain Behavior?
In a keynote speech recently shared by Input Output, Cardano founder Charles Hoskinson emphasized the need for privacy-compliant DeFi infrastructure. Referring to the Midnight Network initiative, Hoskinson noted that “privacy won’t scale without compliance,” framing it as a foundation for institutional-grade DeFi on Cardano.
However, this long-term vision has not yet translated into an uptick in either developer metrics or address activity, indicating that investor and builder interest may remain subdued until concrete rollouts or upgrades follow.
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