Cardano (ADA) has declined 70% in 2025, erasing its 2024 gains despite maintaining its position as a top-10 cryptocurrency by market capitalization. Two emerging demand sources—Midnight (NIGHT) token trading and institutional exchange-traded product inclusion—signal potential recovery factors for the struggling asset.
What Happened: Trading Surge and Institutional Recognition
Trading volume for NIGHT, a privacy-focused blockchain token developed by Input Output Global (IOG), reached 125 million ADA on Cardano decentralized exchanges last week, according to Cardanians, a company operating Cardano stake pools. This week's volume stands at 59 million ADA.
DexHunter, a Cardano DEX aggregator, reports NIGHT order books show 1.38 million ADA in buy orders compared to 480,000 ADA in sell orders.
The firm called NIGHT "one of the most anticipated projects on Cardano today, and possibly across all ecosystems."
The increased NIGHT trading creates demand for ADA as the base asset for transaction fees, liquidity provision and token swaps.
James Seyffart, a crypto analyst, noted ADA appears in all six crypto index exchange-traded products he reviewed—the only asset to achieve universal inclusion. Seyffart expects additional crypto index ETPs to launch in 2026.
Also Read: Crypto Firms Challenge Banking Sector On Stablecoin Reward Restrictions
Why It Matters: Sustained Network Activity
Financial institutions' consistent inclusion of ADA in diversified crypto investment products indicates views of the asset as stable with strong long-term potential, positioning it ahead of competing altcoins for institutional capital flows.
DeFiLlama data shows Cardano's total value locked has remained stable near 500 million ADA despite price volatility. In the meantime, daily active addresses have held steady around 25,000 since January.
The combination of falling prices and sustained on-chain activity suggests holders are not exiting the ecosystem, reflecting long-term confidence that could support price recovery.
Read Next: Terraform Administrator Accuses Jump Trading Of Profiting $1 Billion From Terra Collapse
