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Cardano’s ADA token has remained a favorite among committed investors who have been accumulating since 2021 with minimal profit-taking, even as the cryptocurrency’s price struggles to break past key resistance levels. Despite not being one of the most actively traded assets in the current market, ADA continues to enjoy strong backing from long-term holders and a steady community presence.
In recent weeks, ADA has managed to maintain a position among the top 15 cryptocurrencies by market capitalization, though it remains just outside the top 10. The broader market recovery has helped the token regain some momentum, pushing it to hold above $0.80 in July. However, this is still well below its December 2021 peak of $1.21, reflecting the slower pace of recovery compared to some other major altcoins.
Long-Term Holders Show Patience
Data from blockchain analytics firm Alphractal reveals that Cardano’s long-term holders—wallets holding ADA for four years or more—have continued to add to their balances. This accumulation trend, which began in 2021, shows no sign of slowing down. In fact, the spring of 2025 marked the start of a new accumulation phase, suggesting that seasoned investors are prepared to wait for a potential long-term breakout.
These investors appear largely unaffected by short-term market fluctuations. While short-term holders remain more balanced between buying and selling, the long-term cohort is consistently holding onto their tokens. This behavior mirrors that of XRP’s community, where many investors have demonstrated a willingness to wait for years in anticipation of a major upward move.
Notably, Cardano’s ownership distribution is relatively broad. Despite the influence of large holders, the top 100 addresses control just 22.56% of the total supply, a lower concentration compared to many other cryptocurrencies. This distribution can help limit the risks of sudden large-scale sell-offs, as no small group of investors holds a dominant share of the supply.
Treasury Management and Future Strategy
One key aspect of Cardano’s ecosystem is its treasury, which currently holds around 1.6 billion ADA tokens. The treasury plays a crucial role in funding network upgrades, community projects, and ecosystem development. In recent governance votes, the Cardano community approved new fund allocations to support technical improvements.
There has also been ongoing discussion within the community about using part of the treasury to diversify holdings into Bitcoin. While this would represent a shift from Cardano’s traditional focus on funding blockchain-based projects, supporters argue it could provide a strategic hedge against volatility in ADA’s price.
If such a move were to happen, it could potentially alter Cardano’s trajectory. Historically positioned as a platform for decentralized applications, games, and Web3 projects, Cardano has not seen the same rapid adoption in these areas as some other Layer 1 networks. Currently, its decentralized finance (DeFi) ecosystem holds about $350 million in total value locked, with stablecoin liquidity around $37 million—numbers that lag behind rivals like Solana, Ethereum, and Avalanche.
Allocating part of the treasury to Bitcoin could serve as a long-term store of value while Cardano continues to build its on-chain economy. However, this strategy would need to be balanced carefully to ensure it does not divert too many resources away from direct network development.
Trading Activity Remains Subdued
In the derivatives market, ADA’s activity remains relatively muted compared to more volatile cryptocurrencies. Open interest stands at around $631 million, with long positions making up approximately 77% of the total. This heavy skew toward long positions means there could be vulnerability to downside pressure if prices drop, potentially triggering a wave of liquidations.
Short positions currently account for about 23% of open interest, and liquidations on either side have been limited. Price levels around $0.81 to $0.82 are seen as potential trigger points for liquidations, but without a major catalyst, ADA is unlikely to experience a sharp short squeeze in the near term.
On the Hyperliquid platform, whale activity is limited, with only five major accounts holding significant ADA positions. Of these, three are maintaining long positions, paying higher funding fees, while the remaining two are shorting ADA and currently benefiting from funding payments.
This relatively quiet trading environment suggests that ADA is currently in a consolidation phase. While short-term traders may find limited opportunities, long-term holders appear unfazed, continuing to view the current range as a period of accumulation rather than distribution.
Outlook for the Remainder of 2025
Looking ahead, ADA’s price performance will depend on several factors, including the broader altcoin market trend, the community’s decisions on treasury management, and any increase in adoption of Cardano’s smart contract capabilities. The accumulation behavior of long-term holders provides a degree of price stability, but without a surge in on-chain activity or a new wave of investor interest, substantial gains may take time to materialize.
Market analysts note that if the ongoing altcoin rally extends into the next few months, ADA could benefit from renewed buying pressure. Historically, Cardano has shown that it can stage significant moves when sentiment turns positive. However, with DeFi and stablecoin activity still relatively modest, the token may need a broader narrative or significant project success to regain its 2021 highs.
For now, ADA remains in a waiting game. Its dedicated community and distributed ownership base provide strong fundamentals, but external market momentum and strategic decisions—such as whether to diversify into Bitcoin—will likely shape its path over the next year.
