ADA Is Down 70% in 2025 —But 2 New Sources of Demand Are Emerging For Cardano

Core Insights - Cardano (ADA) has experienced a significant price drop of 70% in 2025, negating all gains from the previous year, yet it remains a top-10 altcoin by market capitalization [1] - Recent developments in the demand for Midnight (NIGHT) may indicate a potential recovery for ADA [1] Group 1: Midnight (NIGHT) Trading Demand - The surge in trading volume for Midnight on Cardano-based decentralized exchanges (DEXs) is a key driver for potential ADA recovery [2] - Midnight, developed by Input Output Global (IOG), focuses on data privacy using zero-knowledge proof technology, which has led to increased on-chain activity [2] - Trading volume on Cardano DEXs reached 125 million ADA last week and 59 million ADA so far this week, with buy orders for NIGHT significantly outpacing sell orders [3] Group 2: Market Sentiment and Institutional Interest - The strong demand for NIGHT is creating momentum that could support ADA's recovery, although the duration of this interest remains uncertain [4] - ADA's unique position in crypto index investment products, known as Crypto Index ETPs, highlights its stability and long-term potential, as it is included in all six ETP products reviewed by expert James Seyffart [5] - The inclusion of ADA in most ETPs suggests that financial institutions view it favorably compared to other altcoins, indicating a strong market sentiment [6]