Cardano faces scrutiny after a mainnet bug slowed block production, intensifying an already bearish market sentiment. The incident comes at a critical time as the network gears up for the upcoming launch of its Midnight sidechain.
Bug Disrupts Block Production on Mainnet
The slowdown in block production began when Cardano (ADA) encountered a technical issue on its mainnet, following a similar glitch in the Preview environment a day earlier. According to Intersect, an organization that assists in coordinating development within the ecosystem, the bug did not completely halt block production but significantly impacted its speed.
Engineers from Intersect, the Cardano Foundation, and Input Output Global quickly diagnosed the problem and implemented a solution. Node operators using version 10.3.1 or higher were advised to upgrade to Cardano Node 10.5.2, which was designed to address inconsistencies in hash size and a network-related bug pertaining to peer selection. Those on older software versions were not required to take action, and Daedalus wallet users were unaffected.
Despite these reassurances, visible congestion raised concerns among community members who closely monitor on-chain activity. The timing of the bug was particularly sensitive as the network prepares for an increase in activity related to the launch of the Midnight sidechain on December 8.
Following an issue identified in the Preview environment yesterday, Cardano is currently experiencing a technical issue now on Mainnet. Currently, block production has slowed, and we’re working closely with @Cardano_CF and @InputOutputHK as we coordinate a technical response.…
— Intersect (@IntersectMBO) November 21, 2025
While some users dismissed concerns by noting that only specific node versions experienced interruptions, others voiced worries that the slowdown might signal deeper scalability challenges ahead.
Market Reacts as ADA Continues to Decline
The bug hit at a precarious moment for the cryptocurrency markets, leading ADA to become one of the largest underperformers of the session. Cardano (ADA) saw a significant decline of 12.86% within 24 hours, dropping from $0.4697 to as low as $0.3911, before experiencing a slight rebound.
This downturn greatly outpaced the overall market decline of 7.76%, heightening concerns about ADA’s short-term resilience. Negative sentiment was exacerbated by the resurgence of the long-standing narrative surrounding Cardano as a “ghost chain,” catalyzed by criticisms highlighting the relatively low presence of stablecoins on the network and its modest trading volumes compared to major networks.
As adoption indicators come under fresh scrutiny, Cardano’s mainnet bug added another layer of pressure, creating what analysts describe as a “perfect storm” that accelerated a sell-off across trading platforms.
Technically, ADA’s breach of the key support level at $0.40 triggered algorithmic sell-offs and additional liquidations. Indicators such as the RSI dropping into heavily oversold territory and a bearish MACD crossover signal a decline in momentum. The next major support now resides around $0.33 unless ADA can reclaim $0.44, a level that previously served as a short-term pivot.
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