Cardano's native token, ADA, has seen its price rise consistently over the past three months, climbing almost 40%. This price increase has sparked hope for another significant jump in September. However, this bullish price action stands in stark contrast to the network's on-chain data, which paints a much less optimistic picture.
Despite the price rally, network usage is in decline. Daily active addresses have plummeted, and the Total Value Locked (TVL) on the network has been cut in half, dropping from $721 million to under $400 million. This divergence between a rising price and falling activity often raises concerns about potential market manipulation or a rally that lacks strong fundamental support.
Recent derivatives data adds to the uncertainty. A price spike to $0.96 was accompanied by a surge in futures open interest, but without sustained momentum, the price and open interest both retreated, creating a volatile and unpredictable environment for traders.
One of the key issues for Cardano is its struggle with infrastructure, specifically the integration of Chainlink's oracle data. Unlike Ethereum, Cardano's unique architecture makes it difficult and costly to integrate with Chainlink. Cardano founder Charles Hoskinson has even noted that Chainlink's price for integration was "absurd," highlighting the challenge. This lack of easy access to reliable oracle data has slowed the growth of Cardano's DeFi ecosystem, leaving it lagging behind competitors like Ethereum, which saw a significant increase in TVL after its full integration with Chainlink.
To move beyond speculative price pumps and build a robust DeFi ecosystem, Cardano will likely need to find a way to integrate with Chainlink. While the price charts may look promising, the underlying fundamentals suggest that the network still faces significant challenges to catch up with its rivals.
September 2025, Cryptoniteuae