Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Cardano News Today: AI-Induced Chain Division Demonstrates Cardano's Robustness and Flexible Governance

Cardano News Today: AI-Induced Chain Division Demonstrates Cardano's Robustness and Flexible Governance

Bitget-RWA2025/11/29 06:30
By:Bitget-RWA

Cardano Network Proves Its Strength Amid Chain Split Incident

Cardano’s blockchain recently faced a significant challenge when a chain split occurred, yet the network remained operational without any downtime. The disruption was caused by an AI-generated malformed transaction, which temporarily affected consensus. However, the issue was quickly addressed as pool operators updated their node software within 24 hours, restoring synchronization and reuniting the chains. While the event revealed a rare vulnerability, it ultimately highlighted the resilience of Cardano’s Ouroboros protocol and the effectiveness of its community-led governance.

The incident took place during testing by a developer known as Homer J, who discovered a flaw that allowed transactions with oversized hashes to bypass normal validation checks. Although this led to temporary outages for many wallets and decentralized applications, block production on the network continued without interruption. Cardano’s founder, Charles Hoskinson, confirmed that a technical solution was rapidly deployed and suggested that regulatory scrutiny of the exploit may follow. Industry experts commended Cardano’s ability to maintain stability under pressure, with Solana co-founder Anatoly Yakovenko noting the robustness of the Ouroboros protocol and the inherent challenges of building consensus mechanisms without proof of work.

Cardano Blockchain Network

Market Outlook and Whale Activity

Despite the recent turmoil, overall market sentiment towards Cardano remains cautiously positive. On-chain analytics show that large investors are accumulating ADA at key support levels, with positive delta metrics suggesting increased activity from major holders. This accumulation trend stands in contrast to retail investor behavior, indicating that experienced participants may view ADA as undervalued at current prices. Cardano’s stablecoin ecosystem has also expanded rapidly, with its stablecoin market cap reaching $42 million in 2025—a significant rise from almost nothing in 2021. However, this figure is still small compared to the global stablecoin market, which totals $308 billion, pointing to considerable room for growth.

Strategic Initiatives and Governance

In light of the recent incident, the Cardano Foundation has put forward a proposed budget of 70 million ADA (approximately $70 million) for 2026 to further strengthen the ecosystem. The budget focuses on several key areas:

  • Expanding stablecoin integration
  • Developing the Midnight sidechain
  • Enhancing Bitcoin DeFi capabilities
  • Providing liquidity support
  • Advancing payment system infrastructure

This funding proposal will be decided by a community vote, serving as a crucial test of Cardano’s decentralized governance model, which emphasizes stakeholder participation in major decisions.

Technical Analysis and Future Prospects

Market analysts have observed that periods of significant ADA accumulation by large holders often coincide with technical indicators such as the Relative Strength Index (RSI) reaching oversold levels, historically leading to price recoveries. Some traders are now watching for another RSI oversold signal as a potential trigger for further ADA gains.

Institutional interest in Cardano remains strong, with data showing ongoing accumulation by major investors. The network’s swift recovery from the chain split has bolstered confidence in its infrastructure, especially as it adapts to new regulatory and technological developments. With plans to integrate Bitcoin DeFi and expand its sidechain ecosystem, Cardano is positioning itself as a leader in the next wave of blockchain innovation, while also addressing vulnerabilities revealed by recent events.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

XRP News Today: XRP ETF Inflows and RLUSD Rally Counteract Bearish Death Cross Predictions

- Analysts challenge bearish XRP forecasts despite 40% price drop and death cross signals, citing strong RLUSD growth and $622M ETF inflows as bullish fundamentals. - Technical indicators show mixed signals: daily RSI divergence suggests weakening selling pressure, while weekly charts maintain bearish divergence. - EGRAG draws parallels to 2017/2021 consolidation phases, noting XRP remains above 200-day MA and lacks 2018 crash's momentum collapse. - Key resistance at $2.30-$2.40 could trigger $2.60 rally i

Bitget-RWA2025/11/29 14:36
XRP News Today: XRP ETF Inflows and RLUSD Rally Counteract Bearish Death Cross Predictions

Ethereum News Update: Crypto's Battle for Dominance: Ethereum and Solana Emerge as Leading Survivors Over Competitors

- Arthur Hayes, BitMEX co-founder, asserts Ethereum and Solana are the only viable long-term layer-1 blockchains, dismissing projects like Monad as "zero" with inevitable collapse. - He highlights Ethereum's institutional adoption, security, and scalability as key advantages, while Solana faces challenges sustaining growth amid waning meme coin momentum. - Hayes predicts market consolidation, noting most L1s lack real-world utility, and criticizes Monad's speculative hype despite its short-lived price surg

Bitget-RWA2025/11/29 14:18
Ethereum News Update: Crypto's Battle for Dominance: Ethereum and Solana Emerge as Leading Survivors Over Competitors

BNB News Update: BNB Faces Key Support—Will It Bounce Back or Continue Falling?

- Binance Coin (BNB) tests critical support near $836.72 as RSI hits oversold 29.78, signaling potential short-term reversal. - CoinCodex forecasts bearish 2025 outlook with $895.73 average price, while 2026 projections mirror 2025's $830.27-$970.50 range. - Key support at $790.79 and resistance at $885.45 identified; breakdown below $790.79 risks $750-$760 correction. - Long-term analysis shows 60% bearish indicators, 28 Fear & Greed Index, and negligible chances of reaching $1M by 2050. - Price remains c

Bitget-RWA2025/11/29 14:18
BNB News Update: BNB Faces Key Support—Will It Bounce Back or Continue Falling?

A Rapid Strategic Shift That Signals Trouble for Smaller Crypto ETF Entrants

Quick Take Summary is AI generated, newsroom reviewed. CoinShares withdrew XRP, Solana and Litecoin ETF plans due to a crowded U.S. market. The firm says shrinking margins make new launches less profitable. U.S. crypto regulations add complexity and delay strategic expansion. CoinShares will focus on global markets with clearer rules and stronger demand.References 🚨COINSHARES DROPS XRP, SOL & LTC ETF PLANS CoinShares has withdrawn its planned U.S. ETFs for XRP, Solana staking, and Litecoin. The firm says

coinfomania2025/11/29 14:12