Cardano (ADA) Weakens By Over 60%: Whales Prefer This New Crypto Under $1

Dubai, UAE, February 2, 2026

Sharp price declines often change investor behavior faster than any headline rally. When a major asset like Cardano loses more than 60% of its value, confidence starts to erode, especially among large holders. These moments tend to trigger capital rotation rather than panic selling.

As early 2026 unfolds, whales are becoming more selective. Instead of waiting for weakened legacy assets to recover, many are shifting toward newer crypto projects below $1. These early-stage protocols offer higher price sensitivity and clearer upside if adoption grows. 

Cardano (ADA)

Cardano (ADA) has spent the last several months battling a persistent downward trend that has frustrated its long-term community. Once hailed as a primary competitor to Ethereum, the asset has seen its market value weaken significantly. 

Currently, Cardano is trading at roughly $0.31, a staggering 60% decline from its levels just six months ago. With a market capitalization still holding near $11.6 billion, the coin is trapped in a deep-liquidity zone. While this provides stability, it also means that the price is incredibly heavy and resistant to upward moves.

From a technical perspective, ADA is facing a wall of resistance that seems difficult to overcome in the short term. The $0.38 to $0.40 range has transformed into a major psychological barrier. Every time the price attempts a recovery, it is met with heavy selling pressure from holders looking to exit. 

Analysts point to a series of lower highs on the daily chart, which confirms that the bearish structure is still in control. Without a massive increase in network adoption or a significant technical breakthrough, the forecast for ADA remains cautious. Many experts believe the coin will continue to move sideways or decline further as capital seeks more productive environments.

Mutuum Finance (MUTM)

As Cardano continues to lose momentum, Mutuum Finance is starting to draw attention from more experienced market participants. Rather than positioning itself as a general-purpose blockchain, Mutuum Finance is being built as a focused on-chain crypto protocol. Its goal is to create a more efficient framework for decentralized lending and borrowing.

The project is designed to let users earn yield by supplying assets or unlock liquidity through collateral, without selling their long-term holdings. This specialized approach sets it apart from older platforms that try to serve too many use cases at once. Instead, Mutuum Finance is concentrating on capital efficiency and practical financial utility.

On the security side, the project has already completed an independent audit with Halborn Security. This step signals a strong emphasis on contract safety and long-term reliability, aligning the protocol with standards often expected by more cautious and institutional-focused investors.

The project’s financial momentum is hard to ignore. Mutuum has raised over $20.1 million and has already reached over 19,000 individual holders. Currently in Phase 7 of its presale, the MUTM token is priced at just $0.04. 

This represents a 300% growth from its initial starting price of $0.01 in early 2025. With a total supply of 4 billion tokens and 45.5% (1.82 billion) allocated to the presale, the project is prioritizing community ownership over venture firm control. This fair distribution model is exactly what attracts whales who are looking for a project with high growth potential and low centralized risk.

MUTM vs ADA: The Contrast of Opportunity

The contrast between Cardano and Mutuum Finance comes down to price elasticity. For a $800 investment in Cardano to double, the project needs to add another $11.6 billion to its market cap. This is a massive hurdle that requires global institutional shifts. 

In contrast, a $800 investment in MUTM at $0.04 buys a significant stake in a protocol that is still in its supply-formation stage. Because the market cap of a new project is much lower, even a small amount of success can lead to explosive price moves.

Cardano is also facing structural limitations. Its peer-reviewed approach, while secure, often results in slower development cycles compared to modern DeFi protocols. Mutuum Finance, however, is built for the speed of today’s markets. The protocol’s roadmap highlights a buy-and-redistribute mechanism that takes protocol fees to buy back tokens and reward stakers. 

This would create constant buying demand that Cardano simply cannot match. While ADA remains a passive asset for many, MUTM is a cheaper cryptocurrency designed to grow alongside the usage of its lending pools. This difference in yield mechanics is why smart money is rotating out of the $0.31 giant and into the $0.04 newcomer.

V1 Launch and the Phase 7 Countdown

The clearest signal of Mutuum Finance’s progress came this week with the launch of its V1 protocol on the Sepolia testnet. This is where development turns into execution. The code is now live and usable.

Users can interact with real lending pools, test borrowing flows, and observe how the mtToken system is designed to accrue interest over time. The testnet supports USDT, ETH, LINK, and WBTC, along with key metrics such as health and stability factors. While still risk-free, this release offers a clear view of how Mutuum Finance is intended to function once fully deployed.

This technical success has caused Phase 7 to sell out at an accelerated pace. As the project nears its confirmed official launch price of $0.06, the window to enter at the current discount is closing fast.

With the V1 protocol already live and a whale-backed funding record, the path for MUTM is clear. Analysts are increasingly bullish, with some seeing the potential for the token to jump 4x-8x as long as mainnet rolls out as planned. For those watching the 60% decline of Cardano, the lesson is simple: the largest gains are found in projects that are building the next crypto generation of utility, not those resting on their past reputation.

For more information about Mutuum Finance (MUTM) visit the links below:

Website:https://www.mutuum.com

Linktree:https://linktr.ee/mutuumfinance