- Cardano’s network growth and governance upgrades boost ADA’s 2025 price outlook toward the $3 mark.
- ADA’s DeFi activity, staking surge, and V-shaped recovery signal strong investor confidence and market momentum.
According to a recent report by market intelligence platform Messari, Cardano (ADA) recorded remarkable growth in 2024. The network witnessed substantial increases in price, transaction volume, and decentralized finance (DeFi) activity, underscoring its expanding ecosystem.
With ADA showing strong recovery signals in early 2025 and upcoming network upgrades, market watchers are speculating whether the asset could reach the $3 mark this year. However, the path ahead hinges on key factors like liquidity improvements, governance changes, and broader market sentiment.
Cardano’s 2024 Performance Reflects Robust Network Growth
Messari’s analysis highlights Cardano’s significant strides in 2024, with ADA surging 126.2% in Q4 alone, climbing from $0.374 to a four-year high of $1.327 before closing the quarter around $0.844. This rally reversed previous quarterly declines, bringing the cryptocurrency’s year-over-year (YoY) growth to 42.2%.
Increased on-chain activity supported this upswing. The network’s daily active addresses rose to an average of 42,900 in Q4—up 57.8% quarter-over-quarter (QoQ)—while daily transactions peaked at 71,500, the highest for the year.
DeFi activity on the Cardano blockchain also surged. The total value locked (TVL) soared 94% in Q4 to $448.9 million, marking a 19.8% increase from 2023. Notably, total staked assets reached $18.4 billion during the last quarter, representing a 117.4% QoQ jump and 36.5% growth YoY. Despite this USD-based growth, staking metrics in ADA terms declined 4%, indicating the gains were largely price-driven.
What’s Driving ADA’s 2025 Recovery and Potential $3 Target?
ADA has started 2025 on a bullish note. The token rebounded 9% from its February 18 low of $0.73 to trade above $0.79 on February 20, recovering most of its recent losses. Analysts attribute this recovery to multiple factors, including network improvements and governance milestones.
On February 19, Cardano founder Charles Hoskinson announced the ratification of the Cardano Constitution during a live broadcast. Approved by 85% of voters, the new constitution replaces the interim version introduced in June 2024. It aims to decentralize decision-making, empower ADA holders, and improve network transparency. The Cardano Foundation noted this development establishes a structured governance framework that enhances community-driven growth.
Technical indicators also suggest bullish momentum. ADA’s daily chart reveals a V-shaped recovery pattern since mid-January. If the token breaks above the $0.90–$0.98 supply-demand zone—where the 50-day and 100-day simple moving averages converge—it could retest the $1.167 neckline. Surpassing that level may push ADA toward its December 2024 high of $1.33, reflecting a 48% potential upside from current prices.
ADA/USD daily chart.Source: TradingView
Crypto analysts Dan Gambardello and Nala speculate that favorable exchange-traded fund (ETF) news, akin to developments with XRP, could propel ADA to $3. The anticipated Ouroboros Leios update, promising faster transaction processing, further strengthens this bullish outlook. Improved liquidity through advanced decentralized exchange (DEX) routing and smart trading tools could also attract larger investors, bolstering ADA’s upward trajectory.
Network Activity and Investor Confidence Gain Momentum
Cardano’s ecosystem growth extends beyond price action. DeFiLlama data shows the network’s TVL rose 22.4% between February 8 and February 16, climbing from $313.6 million to $383.7 million. Key protocols like Splash Protocol, lenFi, and Indigo led this surge with respective locked value increases of 125%, 5%, and 29%.
On-chain metrics indicate sustained investor interest. Daily transactions have steadily increased since early February, supported by rising open interest in ADA futures contracts. Data from CoinGlass shows open interest surged 17% to reach $710 million on February 20, underscoring heightened market participation.
rising open interest in ADA futures contracts:Source: Coinglass
Market observers also note ADA’s relative strength index (RSI) climbing from an oversold 25 on February 9 to 46 on February 21, signaling improving investor sentiment. While ADA currently faces resistance, surpassing key levels could pave the way for a sustained rally.
