Cardano’s ADA Rally Raises Derivatives Risk as Stablecoin Supply Falls

Cardano's ADA gained about 42% from Sept. 16 to Oct. 5, while open interest rose 25% to $304 million, signaling increased derivatives activity. However, Cardano's stablecoin supply declined 0.74%, suggesting reduced on-chain liquidity. The rally raises risks of liquidation cascades as leverage builds.