Real Reason Why ADA Price is Not Increasing - CoinTrust

The crypto market is turning bullish again, and the technical indicators are turning in favor of altcoins. Bitcoin has recovered and holds near recent highs, and that optimism spills into the broader altcoin space. Trading volumes have improved, and many tokens are trending higher. Ethereum has pushed through important resistance levels with steady momentum, and XRP climbed after a long period of sideways trading. In this broader recovery, Cardano stands out because it has not moved much. ADA has been trading in a relatively tight range for months, which tests the patience of those who own it. Investors have begun asking why ADA price is not increasing when other coins are doing well.

What is ADA?

ADA is the native token of the Cardano network. Cardano is a proof‑of‑stake blockchain designed with long‑term stability as a core goal. Its developers emphasize security by using formal verification and peer‑reviewed research rather than rushing changes. The consensus mechanism consumes far less energy than proof‑of‑work networks, which addresses environmental concerns.

The project has a treasury system that funds future upgrades without relying on outside capital, and on‑chain governance gives token holders a direct voice in how the protocol evolves. These design choices reflect a focus on reliability, efficiency, and a self‑sustaining economy.

ADA price history

Cardano launched in 2017 and rallied with the broader 2017–18 boom, reaching about $1 in January 2018. It then lost more than 90 % of its value during the long bear market. Momentum returned around the 2020 “Shelley” upgrade, and ADA rose sharply in the second quarter of that year. In 2020, momentum returned around the Shelley upgrade, with ADA up 170% in Q2 and at a one-year high. In 2021, Cardano set its $3.10 all-time high in early September as smart contracts went live.

After that, a prolonged drawdown followed, lasting through 2023. ADA saw a strong rebound in late 2024, but its price still sits well below the 2021 peak. Historically, ADA’s strongest quarter is Q4, while Q3 is the weakest on average.

Cardano’s DeFi TVL stands near $348 million, which places it around 20th. Solana holds about $102 billion, and Ethereum sits at around $565 billion.

Price performance reflects this gap: Ethereum has gained around 35% this year, XRP is roughly flat, and ADA is down about 20 %, although Solana has fallen further, over 30%.

Usage metrics tell a similar story. Recent leaderboards of daily active users place chains like BNB Chain, NEAR, Solana and Tron at the top, while Cardano does not appear in the top tier. Lower activity often means less attention and fewer speculative flows into the token.

So, what is the actual reason why ADA price is not increasing?

There are many factors. First, no Cardano exchange‑traded fund, aka ADA ETFs, have been approved yet. Analysts anticipate the U.S. Securities and Exchange Commission may decide on a spot ADA ETF later this year, but approval remains pending. Without an ETF, it is harder for some regulated investors to buy ADA.

Secondly, large institutional investors still focus on Bitcoin and Ethereum. Although Cardano was included in the U.S. government’s strategic crypto reserve announced in March 2025, mainstream funds and corporate treasuries have not adopted ADA in the same way they have embraced Ethereum.

For example, corporate and institutional holdings of Ether have surged to roughly $13 billion, highlighting a clear preference.

Also, there are no prominent public programs or corporate treasuries consistently accumulating ADA like they do in case of Ethereum and Bitcoin.

ADA price target  August 2025

ADA’s price action this year suggests it may be building a base for a move higher. Recent charts show that ADA has broken above a long‑standing bearish trendline that capped its advances for months. After climbing briefly to around $0.93, ADA pulled back due to profit‑taking and retested support near $0.70.

That support level held the price up, which shows the ongoing downtrend may have ended. Technical analysis now points to a local target around $1.06 in August 2025 if buying pressure returns to levels seen in previous rallies. Momentum indicators, such as the stochastic oscillator, are turning up, which supports the case for further gains. A decisive move above $0.95 would strengthen this technical pattern.