During the year 2025, the market value of the Cardano asset decreased by 70%, leading to a loss of profits recorded last year. Although the coin maintains its position in the top ten largest cryptocurrencies by market capitalization, the prolonged downward trend has raised concerns among many investors.
Nevertheless, signals emerged at the end of December indicating a potential recovery in quotes. The main factor is the growing interest in the Midnight (NIGHT) project.
The influence of the Midnight network on the demand for the asset
A noticeable stimulus for the ecosystem has been the increase in trading volume of the NIGHT token on decentralized exchanges (DEX) within the Cardano network. Midnight is a blockchain platform developed by Input Output Global (IOG). The project focuses on ensuring data privacy through zero-knowledge proof technology.
According to the report by the pool operator Cardanians, trading of the NIGHT token on local platforms has provoked a new wave of on-chain activity.
Statistics show that last week the trading volume on Cardano exchanges amounted to 125 million ADA. This week, the figure has already reached 59 million ADA. The aggregator DexHunter notes that in the order book, the demand for purchasing NIGHT for ADA significantly exceeds the supply for sale. In particular, the volume of buy orders is 1.38 million ADA against 480 thousand ADA for sale.
Representatives of DexHunter emphasize that Midnight is one of the most anticipated projects in the current cycle. Such activity directly increases demand for ADA. This asset is essential for users to pay fees, ensure liquidity, and conduct exchange operations.
Institutional interest and the resilience of ecosystem indicators
The second important factor is the status of ADA in the structure of cryptocurrency index products (ETP). Analyst James Seyffart conducted a market study that showed Cardano's unique position. According to his data, ADA has become the only asset included in all six index baskets he examined.
The expert expects an expansion of exchange-traded products in 2026. The inclusion of Cardano in most ETPs indicates that financial institutions view this project as a reliable tool with long-term potential. Such a position contributes to the influx of institutional capital and creates sustained buying pressure.
At the same time, data from the DeFiLlama platform indicate the stability of the total value locked (TVL). The figure is maintained at around 500 million ADA, despite market volatility. This means that users are not withdrawing capital and continue to hold their positions in the ecosystem.
The number of daily active addresses since the beginning of the year has also remained unchanged at approximately 25,000. The combination of price decline with high network activity suggests that investors are not intending to leave the project. Such holder behavior often acts as a catalyst for a subsequent trend reversal.
