Cardano (ADA) declined 3% in the past 24 hours, sliding to $0.72 during a period of broader crypto market weakness and heightened sell-side pressure following the Midnight (NIGHT) token airdrop.
Airdrop Volatility Pushes ADA Below Key Support
ADA was trading between $0.734 and $0.760 throughout the day, but failed to hold above the critical $0.740 support level. The sharp move downward reflects increased distribution pressure as traders offloaded ADA following their NIGHT token allocations.
Heavy volume and a 3% daily loss positioned ADA as one of the underperformers among top altcoins.
The price action highlights the market’s uncertainty surrounding the new Midnight protocol’s impact on Cardano’s token economics in the near term.
Midnight Project Draws Institutional Curiosity
Despite the price dip, Cardano founder Charles Hoskinson shared an optimistic outlook for Midnight in a recent interview. According to Hoskinson, the project has attracted attention from major institutions:
“We’ve met with all the big guys,” he said, noting growing interest in anonymous crypto trading infrastructure being built on Cardano.
The Midnight protocol aims to enable private smart contract execution, a potential differentiator in the increasingly competitive layer-1 ecosystem.
$71 Million Treasury Approval Signals Long-Term Focus
Adding to Cardano’s fundamental developments, Input Output Global (IOG) received approval for a $71 million treasury proposal to fund 12 months of network upgrades.
This funding package is expected to support scalability, governance, and smart contract enhancements throughout 2026.
With core improvements underway and institutional interest rising, Cardano may be laying the groundwork for a stronger rebound — but in the short term, market sentiment remains fragile.
Conclusion
ADA’s recent price slide reflects a mixture of broader market weakness and airdropped token distribution effects. While long-term infrastructure developments remain positive, near-term volatility may persist as the market digests new supply dynamics and evolving privacy narratives.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.