Cardano Price Crashes to 2021 Lows as Charles Hoskinson Predicts ADA’s DeFi Collapse

Cardano (ADA) price remains under bearish pressure after dropping by 34% year-to-date to its lowest level since 2021 of $0.207. This drop coincides with Charles Hoskinson saying that more dApps and DeFi on Cardano will die in the second half of 2026.

Hoskinson’s remarks have also made traders start asking if Cardano is dead after two projects on the network: TapTools and JPG. Store marketplace shut down less than two weeks apart.

Cardano Drops to 5-Year Low Amid Hoskinson’s DeFi Warning

The Cardano founder took to X to address the dangers that are facing Cardano after the biggest analytics platform on Cardano known as TapTools announced it will be winding down after four years after its co-founders left.

Cardano price fell to $0.207, its lowest level since January 2021, after TapTool’s closure was announced. Hoskinson now says that the Cardano community should brace for more projects to collapse because the current market is not good after crypto prices crashed yet again on June 2, with liquidations topping $1.8 billion.

“The second half of the year for Cardano, we are probably going to see more dApps and DeFi die. And consolidation happens,” Hoskinson added.

Retail demand towards Cardano has now faded because of these closures and the OI has gone from $583 million seen on May 13 to $404 million on June 3 per CoinGlass data.

This declining OI shows that traders are not opening new positions because of a bearish long-term Cardano price forecast coming from projects winding down and the sentiment in the market weakening.

Cardano’s DeFi TVL Hits 4-Month Low as Revenue Dries Up

Data from DeFiLlama shows that the Cardano DeFi TVL has dropped to $123.53 million. The TVL has never been this low since February 2026, and the fees paid have also dropped by 50% since May 28, from $88,183 to $32,920.

Cardano’s revenue reached $12,500 according to TokenTerminal, while in comparison, Solana had a revenue of $1.8 million.

Cardano is also facing a governance crisis that also shut down a summit that was supposed to occur in October, and this is dimming hopes that new projects might come to ADA.

Cardano Price Eyes More Dips as Sellers Take Control

The RSI has a reading of 32 on Cardano’s weekly chart, and that shows that the momentum is weak as sellers sell Cardano in a market that does not have buyers.

An RSI reading of 32 usually means oversold, but zooming out to December 2022 shows that it has gone below 30 before, and means sellers might not be in exhaustion, and Cardano price might drop again.

Cardano has a psychological support level of $0.20, and if the price moves below it, the next buffer will be the 61.8% Fib level of $0.19.

Cardano needs to rise past the obstacle at $0.25 to confirm that bulls have regained a good grip.