Cardano (ADA) open interest has collapsed from $1.6 billion to $334 million as major traders exit their positions and Binance loses its dominance over the token's derivatives market.
According to Alphractal founder Joao Wedson, the shift mirrors a pattern that preceded Solana's (SOL) loss of momentum in 2024.
What Happened: ADA Open Interest Collapses
In 2023, Binance controlled over 80% of ADA's open interest while 17 other exchanges combined held less than 20%. That ratio has now inverted.
By 2026, Binance holds just 22% of ADA open interest, while Gate.io has emerged as the new leader at 31%.
Wedson noted that this redistribution is significant because a nearly identical pattern played out with Solana.
During SOL's rally from $20 to $200 in 2023-2024, Binance's dominance in open interest grew alongside price appreciation. When that dominance later faded, Solana's momentum weakened.
"Binance tends to be the exchange that fuels strong altcoin rallies, but only when leverage is concentrated and competition is limited," Wedson said. ADA itself has dropped more than 10% over the past week, falling from near $0.30 to $0.23 before consolidating around $0.26.
Also Read: Binance SAFU Fund Doubles Down With 4,225 BTC Buy, Now Holds $734M In Bitcoin
Why It Matters: Fragmented Leverage Limits Upside
Pseudonymous analyst Crypto Patel maintains that Cardano's long-term structure remains bullish as long as the price holds above $0.13 on a weekly close. On the upside, he says ADA needs to reclaim $0.44 to confirm a new uptrend.
If that level is reached, Crypto Patel sees a potential bull cycle with long-term targets between $1.20 and over $10, similar to past cycles. But with open interest now fragmented across exchanges and the broader crypto market under pressure, the near-term path higher faces significant obstacles.
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