The cryptocurrency market showed a diverging trend on July 2, 2025. On one front, Coinbase advanced its strategic expansion by acquiring Liquifi, a token management platform — marking its fourth acquisition of the year. On the other, Cardano (ADA) struggled with a growing crisis of confidence. Despite positive developments like the launch of the cbETH cross-chain bridge, ADA recorded a 16% drop in June, saw $182 million in outflows, and experienced a 25% decline in active addresses. Trading around $0.5590, ADA now faces a critical support level at $0.5235. Market watchers are asking: can a proposed Grayscale Cardano ETF turn the tide?
Cardano’s Confidence Crisis: Will ADA Drop Below $0.52?
Cardano ended June 2025 with a significant 16% price decline, despite encouraging ecosystem upgrades. The introduction of the cbETH bridge, enabling Ethereum-based assets to move to Cardano, and ADA’s integration into Coinbase’s Base L2 network, were promising steps. Yet, investor sentiment has weakened. Over $182 million flowed out of ADA holdings, and only 46% of current holders remain in profit — a clear sign of eroding confidence.
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Chain analytics paint a concerning picture. Active addresses plummeted from 24,000 to under 18,000 by June 21, indicating sharply reduced user engagement. This drop suggests a widening gap between technological progress and real-world adoption. Even after network upgrades aimed at improving scalability and interoperability, retail participation has not rebounded.
Currently, ADA trades at approximately $0.5590, down 1.02% on the day and 3.81% over the week. The key technical support lies at $0.5235 — a level that, if broken, could trigger further selling pressure. With momentum fading and on-chain activity contracting, market sentiment remains cautious.
Could the proposed Grayscale Cardano ETF restore investor trust? Such a product would open the door for institutional capital into the ADA ecosystem, offering regulated exposure similar to Bitcoin and Ethereum ETFs. However, approval by the U.S. SEC is uncertain, and even if greenlit, it may take months before trading begins. In the meantime, Cardano must prove it can convert innovation into widespread usage.
Coinbase Acquires Liquifi to Expand Crypto Ecosystem
In a strategic move reinforcing its dominance in the digital asset space, Coinbase acquired Liquifi, a platform specializing in tokenized equity management and automated token distribution. While financial terms were not disclosed, the acquisition underscores Coinbase’s aggressive 2025 growth strategy — now totaling four major deals this year alone.
This follows previous acquisitions including Deribit (valued at $2.9 billion), advertising tech firm Spindl, and key developers from privacy-focused Iron Fish. By bringing Liquifi in-house, Coinbase integrates critical tools for managing cap tables, vesting schedules, and token releases — essential infrastructure for startups launching on blockchain.
“Token creation and cap table management are part of the same journey,” said Aklil Ibssa, a senior product executive at Coinbase. “Simplifying onboarding is key to achieving mass adoption.”
With this acquisition, Coinbase is building an end-to-end ecosystem where projects can incorporate, issue tokens, manage shareholders, and list on exchange — all within a unified platform. This vertical integration positions Coinbase not just as an exchange, but as a full-stack Web3 infrastructure provider.
Additionally, Coinbase continues pushing regulatory boundaries by seeking SEC approval to offer tokenized equities — digital versions of traditional stocks backed by real-world assets. If approved, this could bridge conventional finance with decentralized markets, attracting both retail and institutional investors.
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Key Challenges Facing Cardano in 2025
While technological advancements continue, Cardano faces three core challenges:
- Low User Engagement: Despite upgrades like Hydra for scaling and improved smart contract functionality, daily active users continue to decline.
- Competition from Established Chains: Ethereum’s dominance in DeFi and Solana’s speed advantage in dApp performance make it harder for Cardano to capture market share.
- Perception of Slow Adoption: Critics argue that while Cardano emphasizes peer-reviewed research and long-term planning, execution speed lags behind market demands.
To regain momentum, Cardano needs more than technical upgrades — it needs compelling use cases that drive real user demand.
How Coinbase’s Strategy Differs
Unlike many crypto platforms focused solely on trading, Coinbase is executing a broader vision: becoming the foundational layer for digital asset activity. Its acquisitions are not random but strategically aligned:
- Deribit → strengthens derivatives offerings
- Spindl → enhances targeted advertising in Web3
- Iron Fish talent → boosts privacy and cross-chain capabilities
- Liquifi → enables startup tokenization and governance
This approach mirrors how tech giants build ecosystems — think Apple’s hardware-software-services loop or Amazon’s cloud-commerce-logistics network.
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By controlling multiple touchpoints across the value chain, Coinbase increases user stickiness and reduces reliance on volatile trading volumes.
Frequently Asked Questions (FAQ)
Q: Why is ADA losing value despite new developments?
A: While technical upgrades like the cbETH bridge add utility, price is driven by demand and sentiment. Outflows, declining activity, and macro uncertainty have outweighed positive news, leading to bearish pressure.
Q: What does Liquifi do for Coinbase?
A: Liquifi provides automated tools for managing token distributions, vesting schedules, and equity structures. This allows Coinbase to support startups from inception through fundraising and listing — deepening its role in Web3 infrastructure.
Q: Is a Grayscale Cardano ETF likely to be approved?
A: Approval depends on SEC evaluation of market structure and investor protection. While Grayscale has succeeded with Bitcoin and Ethereum ETFs, Cardano’s smaller market cap and lower liquidity may pose hurdles.
Q: How does tokenized equity work?
A: Tokenized equity represents ownership in real-world companies using blockchain tokens. Each token corresponds to a share, enabling faster settlement, fractional ownership, and 24/7 trading — potentially revolutionizing traditional stock markets.
Q: Can Cardano recover its user base?
A: Recovery is possible with strong partnerships, developer incentives, and high-utility dApps. However, it requires faster execution and better communication of real-world impact beyond technical milestones.
Q: What makes Coinbase’s acquisition strategy unique?
A: Unlike opportunistic buys, Coinbase targets companies that fill specific gaps in its ecosystem — from compliance and advertising to privacy and equity management — creating a cohesive suite of services.
Final Outlook
As the crypto landscape evolves, two narratives emerge clearly: infrastructure builders versus ecosystem challengers. Coinbase exemplifies the former — methodically expanding its capabilities to dominate the backend of digital finance. Cardano represents the latter — technically robust but struggling to convert innovation into mass adoption.
For ADA holders, the path forward hinges on reigniting user engagement and securing regulatory wins like the Grayscale ETF. For investors watching Coinbase, the message is clear: they’re not just running an exchange — they’re building the rails for the next era of finance.
The divergence between these two stories reflects a broader shift in the market: from speculation to sustainable utility. And in that transition lies both risk and opportunity.
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