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Cardano ADA continued to trade sideways on Tuesday, struggling to find upward momentum despite occasional market optimism.
Notably, over the past seven days, the cryptocurrency has lost nearly 7%, reflecting broader weakness across major digital assets and a cautious investor sentiment.
Meanwhile, according to popular analyst Ali Charts, the total value locked (TVL) within Cardano’s DeFi ecosystem has never surpassed $1 billion.
“Historically, it has been only a fraction of what is locked on competing networks like Ethereum,” he noted, highlighting a structural disadvantage that Cardano faces in attracting capital relative to its peers.
Even newer blockchains, such as SUI, have surpassed Cardano in user adoption and activity, underscoring the network’s competitive pressure.
 
Additionally, analyst Cryptorphic highlighted a recent breakdown from the ascending trendline that had previously supported ADA.
The rejection near the upper resistance zone was “pretty clean,” and the cryptocurrency now appears to be attempting stabilization just below the broken trendline.
The pundit emphasized that unless ADA quickly reclaims this support, market structure still favors sellers, suggesting potential further downside.
“A small bounce could happen first, but overall, the market still leans toward selling pressure,” he stated.
Furthermore, analyst CryptoPulse pointed out that Cardano is currently hovering around the $0.25 demand zone, a level that has historically served as strong support.
A successful defense of this zone could spark a short-term recovery, potentially pushing the price back toward the $0.28–$0.30 range.
Elsewhere, the challenges within Cardano’s DeFi ecosystem are not limited to market and technical factors.
According to Analyst Angry Crypto Show, Cardano founder Charles Hoskinson revealed that integration expenses for Cardano projects often exceed the value they generate.
Notably, in one case, the Midnight Foundation had to cover integration costs out of pocket, totaling more than $10 million.
These financial burdens can discourage new developers from building on the platform, further limiting growth in Cardano’s DeFi ecosystem.
At press time, ADA was trading at $0.26, up 3.06% over the past 24 hours.
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