Bitget App
Trade smarter
Open
HomepageSign up
Bitget>
News>
Markets>
Cardano News Today: AI-Induced Chain Division Demonstrates Cardano's Robustness and Flexible Governance

Cardano News Today: AI-Induced Chain Division Demonstrates Cardano's Robustness and Flexible Governance

Bitget-RWA2025/11/29 06:30
By: Bitget-RWA

Cardano Network Proves Its Strength Amid Chain Split Incident

Cardano’s blockchain recently faced a significant challenge when a chain split occurred, yet the network remained operational without any downtime. The disruption was caused by an AI-generated malformed transaction, which temporarily affected consensus. However, the issue was quickly addressed as pool operators updated their node software within 24 hours, restoring synchronization and reuniting the chains. While the event revealed a rare vulnerability, it ultimately highlighted the resilience of Cardano’s Ouroboros protocol and the effectiveness of its community-led governance.

The incident took place during testing by a developer known as Homer J, who discovered a flaw that allowed transactions with oversized hashes to bypass normal validation checks. Although this led to temporary outages for many wallets and decentralized applications, block production on the network continued without interruption. Cardano’s founder, Charles Hoskinson, confirmed that a technical solution was rapidly deployed and suggested that regulatory scrutiny of the exploit may follow. Industry experts commended Cardano’s ability to maintain stability under pressure, with Solana co-founder Anatoly Yakovenko noting the robustness of the Ouroboros protocol and the inherent challenges of building consensus mechanisms without proof of work.

Cardano Blockchain Network

Market Outlook and Whale Activity

Despite the recent turmoil, overall market sentiment towards Cardano remains cautiously positive. On-chain analytics show that large investors are accumulating ADA at key support levels, with positive delta metrics suggesting increased activity from major holders. This accumulation trend stands in contrast to retail investor behavior, indicating that experienced participants may view ADA as undervalued at current prices. Cardano’s stablecoin ecosystem has also expanded rapidly, with its stablecoin market cap reaching $42 million in 2025—a significant rise from almost nothing in 2021. However, this figure is still small compared to the global stablecoin market, which totals $308 billion, pointing to considerable room for growth.

Strategic Initiatives and Governance

In light of the recent incident, the Cardano Foundation has put forward a proposed budget of 70 million ADA (approximately $70 million) for 2026 to further strengthen the ecosystem. The budget focuses on several key areas:

This funding proposal will be decided by a community vote, serving as a crucial test of Cardano’s decentralized governance model, which emphasizes stakeholder participation in major decisions.

Technical Analysis and Future Prospects

Market analysts have observed that periods of significant ADA accumulation by large holders often coincide with technical indicators such as the Relative Strength Index (RSI) reaching oversold levels, historically leading to price recoveries. Some traders are now watching for another RSI oversold signal as a potential trigger for further ADA gains.

Institutional interest in Cardano remains strong, with data showing ongoing accumulation by major investors. The network’s swift recovery from the chain split has bolstered confidence in its infrastructure, especially as it adapts to new regulatory and technological developments. With plans to integrate Bitcoin DeFi and expand its sidechain ecosystem, Cardano is positioning itself as a leader in the next wave of blockchain innovation, while also addressing vulnerabilities revealed by recent events.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Algorand - Has Declined 58.36% This Year Due to Market Fluctuations

- Algorand’s (ALGO) price fell 58.36% year-to-date, despite a stable 24-hour close of $0.1393. - The token ranks #86 with $1.23B market cap, attracting institutional interest but failing to sustain gains. - Founded by MIT’s Silvio Micali in 2017, Algorand aims to solve blockchain’s scalability-trilemma but faces adoption skepticism. - With 8.8B of 10B tokens in circulation, limited inflationary pressure contrasts with macroeconomic-driven price declines. - Analysts highlight the need for clearer enterprise

Bitget-RWA2025/11/30 06:40
TAO Halving: Will It Spark an AI-Crypto Rally or Trigger a Prolonged Correction?

- Bittensor's first TAO halving (mid-Dec 2025) cuts block rewards by 50%, aiming to reduce inflation and boost price potential through supply scarcity. - Market analysts compare this supply-driven mechanism to Bitcoin's halving pattern, noting intensified miner competition and potential bullish cycles. - While reduced liquidity and macro risks (regulation, supply chains) persist, AI sector growth (e.g., Fluence's $5.3B backlog) could amplify TAO's post-halving momentum. - The automatic halving requires no

Bitget-RWA2025/11/30 06:32
Bitcoin News Today: Bitcoin’s Evolution: Institutional Embrace Overtakes Speculative Hype

- Bitcoin's price decline to $80,000 in late 2025 exposed ETF-driven demand fragility amid $1B+ forced liquidations. - Texas Blockchain Council's $5M IBIT ETF purchase highlights institutional adoption, but self-custody rules exclude BlackRock's product from official reserves. - Macroeconomic headwinds persist with 4.5%+ 10-year yields, though Abu Dhabi's tripled IBIT holdings signal global reserve reallocation. - Market transition shows institutional prioritization of gain-locking over accumulation, with

Bitget-RWA2025/11/30 06:32
Bitcoin News Update: Tether’s Bold Moves in Gold and Bitcoin Spark Debate Over Stability and Regulatory Oversight

- Tether's increased Bitcoin and gold exposure risks USDT stability, prompting S&P to downgrade its peg rating to "weak five" in November 2025. - The firm's 116-ton gold purchase (2% of global Q3 demand) boosted gold prices 50% YTD while expanding XAU₮'s market cap to $2.1 billion. - Tether plans U.S.-exclusive USAT (100% Treasury-backed) to comply with the GENIUS Act, maintaining global gold/BTC reserves amid regulatory scrutiny. - Critics warn lack of audits and volatile asset reliance could erode trust,

Bitget-RWA2025/11/30 06:32

Trending news

More
1
Algorand - Has Declined 58.36% This Year Due to Market Fluctuations
2
TAO Halving: Will It Spark an AI-Crypto Rally or Trigger a Prolonged Correction?

Crypto prices

More
Bitcoin
Bitcoin
BTC
$90,945.98
+0.40%
Ethereum
Ethereum
ETH
$2,997.82
-0.62%
Tether USDt
Tether USDt
USDT
$1
+0.04%
XRP
XRP
XRP
$2.2
+0.98%
BNB
BNB
BNB
$873.62
-0.74%
USDC
USDC
USDC
$0.9998
-0.00%
Solana
Solana
SOL
$136.18
-0.45%
TRON
TRON
TRX
$0.2801
-0.39%
Dogecoin
Dogecoin
DOGE
$0.1492
-0.06%
Cardano
Cardano
ADA
$0.4180
+0.48%
How to buy BTC
Bitget lists BTC – Buy or sell BTC quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now
Trade smarter