The post ADA Is Down 70% in 2025 —But 2 New Demand Sources Emerge appeared on BitcoinEthereumNews.com. Cardano (ADA) price has dropped 70% in 2025, erasing all The post ADA Is Down 70% in 2025 —But 2 New Demand Sources Emerge appeared on BitcoinEthereumNews.com. Cardano (ADA) price has dropped 70% in 2025, erasing all

ADA Is Down 70% in 2025 —But 2 New Demand Sources Emerge

Cardano (ADA) price has dropped 70% in 2025, erasing all gains from last year. Despite remaining a top-10 altcoin by market capitalization, ADA has increasingly frustrated many holders.

However, late December has brought signs that could support a potential ADA recovery. The most notable factor is the rising demand for Midnight (NIGHT).

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How Could Midnight (NIGHT) Trading Demand Impact ADA?

First, the surge in NIGHT trading volume on Cardano-based decentralized exchanges (DEXs) stands out as a key driver.

Midnight is a blockchain network developed by Input Output Global (IOG), the company behind Cardano. The network prioritizes data privacy by utilizing zero-knowledge proof technology.

Cardanians, a company running Cardano stake pools, reported that NIGHT trading on Cardano DEXs has created a new wave of on-chain activity.

Cardano DEXs Volume. Source: Cardanians

Data shows trading volume on Cardano DEXs reached 125 million ADA last week and 59 million ADA so far this week.

DexHunter, a Cardano DEX aggregator, reported that the NIGHT order book reflects stronger demand to buy NIGHT using ADA than to sell. Specifically, buy orders total 1.38 million ADA, while sell orders stand at only 480,000 ADA.

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Midnight (NIGHT) Order Book. Source: DexHunter

These signals reflect growing interest in Midnight and increase demand for ADA as the base asset for fees, liquidity, and swaps.

How long the interest in Midnight will last remains uncertain. For now, it is creating demand momentum that could combine with additional factors to support an ADA recovery.

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Cardano as a Preferred Asset in Crypto Index ETPs While Holders Remain Loyal

Second, ADA’s unique position in crypto index investment products, known as Crypto Index ETPs, also plays an important role.

According to an analysis by expert James Seyffart, ADA is the only asset included in all six ETP products he reviewed.

James Seyffart expects more Crypto Index ETPs to launch in 2026. These exchange-traded products hold diversified baskets of crypto assets.

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Cardano’s inclusion in most ETPs suggests that financial institutions view ADA as stable with strong long-term potential. This perception places ADA ahead of many other altcoins.

Such positioning encourages institutional capital inflows into ADA. It also creates positive buying pressure and attracts retail investors.

Additionally, DeFiLlama data indicate that Cardano’s total value locked (TVL), measured in ADA, has remained relatively stable at around 500 million, despite market volatility. This level indicates that users are not withdrawing capital and continue to hold positions.

Cardano’s Total Value Locked. Source: DeFiLlama

The number of daily active addresses has stayed stable at around 25,000 since the beginning of the year.

Falling prices combined with sustained on-chain activity suggest that investors are not exiting the ecosystem. This behavior reflects long-term confidence among holders and could become a catalyst for ADA’s recovery.

Source: https://beincrypto.com/midnight-and-crypto-index-etps-help-drive-an-ada-price-recovery/

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