TLDR
- Santiment data shows ADA shorts at the highest ratio since June 2023.
- ADA traded near $0.2639 after a drop of about 72% from September levels.
- Cardano held $13.93 million in TVL and $47.62 million in stablecoins, per DeFiLlama.
- Midnight uses NIGHT for governance and DUST for fees, limiting direct ADA demand.
Cardano enters a tense week with ADA shorts at their highest level since June 2023. The rise in bearish positioning comes as ADA trades near $0.2639. The token is down about 72% from September levels and 91.5% from its record high.
That pressure meets the expected mainnet launch of Midnight, a privacy-focused sidechain. Cardano backers present the network as a route for regulated blockchain use. Yet traders remain focused on weak activity, low fees, and falling prices.
Bearish positioning rises before Midnight launch
Santiment data shows the average active Cardano wallet holds a negative 43% return over the past year. Most active wallets remain underwater after months of losses. That has added to the weak tone around ADA.
Binance funding data shows ADA shorts at the highest ratio since June 2023. In a zero-sum market, crowded shorts often point to expectations of more downside. They can also set up a squeeze if sentiment turns fast.
Charles Hoskinson said launches are “kind of like landing the space shuttle.” He said the work looks simple only after careful preparation. His remarks came in a March 23 video, days before the rollout.
On-chain activity remains limited
Onchain data shows ADA carried a market value near $9.72 billion at press time. Yet Cardano remained 91.5% below its all-time high of $3.09. That gap has kept pressure on sentiment and near-term positioning.
DeFiLlama data puts Cardano’s total value locked at $13.93 million. Stablecoin value on the chain stood at $47.62 million, and daily fees were $1,639. Those figures remain small for a network with ADA’s market value.
The weak base-layer data leaves little room for launch setbacks. It also raises the bar for any near-term recovery in ADA. Midnight now arrives under that pressure.
Midnight offers privacy but direct ADA demand is unclear
Midnight is built to offer private data use, not anonymous money movement. It uses zero-knowledge proofs, multi-party computation, and trusted execution environments. The goal is compliant privacy as rules tighten around anonymity tools.
Midnight uses NIGHT for governance and DUST for fees and execution. DUST is non-transferable, while NIGHT traded near $0.04816 with a market value of $799.9 million. That model means direct network use does not clearly feed back into ADA demand.
CryptoSlate data shows NIGHT rose 17.5% in 30 days, while ADA fell 4%. Hoskinson said Midnight could “10x the MAUs, Transactions, and TVL” over time. For now, launch week leaves ADA exposed to risk and a possible short squeeze.
Kelvin Munene
Kelvin Munene is a crypto and finance journalist with over 5 years of experience in market analysis and expert commentary. He holds a Bachelor’s degree in Journalism and Actuarial Science from Mount Kenya University and is known for meticulous research in cryptocurrency, blockchain, and financial markets. His work has been featured in top publications including Coingape, Cryptobasic, MetaNews, Coinedition, and Analytics Insight. Kelvin specializes in uncovering emerging crypto trends and delivering data-driven analyses to help readers make informed decisions. Outside of work, he enjoys chess, traveling, and exploring new adventures.
