Cardano ADA Derivatives Volume Hits $1.85B as Traders Flock Amid Market Uncertainty

Cardano (ADA) has witnessed a remarkable 40% surge in derivatives trading volume, reaching $1.85 billion within 24 hours, as of June 1, 2025. This spike highlights growing interest from both retail and institutional traders, even as the market shows mixed signals. Despite the volume increase, open interest dropped by 10.31% to $851 million, pointing to potential profit-taking behavior. Meanwhile, options volume plummeted 92.94% to a mere $6,590, reflecting diminished hedging activity. The market also saw $8.4 million in liquidations, with the ADA price stabilizing at 0.69300000 USDT. This dynamic suggests a cautiously optimistic sentiment among traders, balancing short-term gains with long-term confidence in Cardano’s ecosystem.

Cardano Derivatives Trading Volume Surges to $1.85B Amid Mixed Market Signals

Cardano (ADA) derivatives trading volume spiked 40% to $1.85 billion in the past 24 hours, signaling renewed interest from both retail and institutional traders. The surge comes despite a 10.31% drop in open interest to $851 million, suggesting profit-taking activity.

Options volume collapsed 92.94% to just $6,590, indicating reduced hedging demand. Liquidation data reveals $8.4 million in losses, predominantly from long positions, as ADA’s price fell 3.57% to $0.7059 after briefly touching $0.7388.

Market sentiment appears divided. The overall long/short ratio sits at 0.8804, yet Binance and OKX show bullish ratios above 2.5. Analysts are closely watching the $0.70 support level, with a break potentially triggering further downside.

Despite the pullback, Cardano maintains a 75% confidence score. The derivatives activity suggests growing sophistication in ADA markets, even as spot prices face pressure.

SEC Delays Grayscale’s Cardano ETF Decision to July 15, Sparking Market Reaction

The U.S. Securities and Exchange Commission has postponed its decision on Grayscale’s proposed spot cardano ETF, extending the review period until July 15, 2025. The delay, enacted under Section 19(b)(2) of the Securities Exchange Act, allows additional time for public comments and regulatory assessment of investor protection measures.

Cardano’s native token ADA immediately reacted to the news, dropping nearly 4% to $0.73 as trading volume declined. The SEC’s move also affects Grayscale’s parallel Avalanche ETF application, now scheduled for review on July 13.

Grayscale seeks to convert its existing Cardano Trust into a spot ETF, with the original filing submitted to NYSE Arca in February. The regulatory timeline now extends through October 22, reflecting the SEC’s cautious approach to cryptocurrency investment products.