Key Takeaways
- Cardano network split was triggered by a deserialization bug exploited through a malicious transaction.
- Emergency patches stabilized the network, but full recovery for DeFi and block producers may take weeks.
- ADA’s market recovery is closely tied to breaking resistance levels and upcoming developments like Midnight and ETF news.
- Cardano continues to advance technologically, with Hydra v1 production readiness and ongoing governance improvements.
Cardano Network Split: What Happened
On November 21, 2025, Cardano experienced a major chain split triggered by a malformed delegation transaction. This incident exposed a three-year-old deserialization bug, dividing the network into two competing chains and prompting an emergency patch. Input Output Global (IOG) and network partners acted swiftly to restore network uniformity. The FBI is investigating the event as a potential cyberattack, with co-founder Charles Hoskinson describing it as a premeditated act by a former testnet participant who allegedly used an AI-generated script.
Also Read: Network Split and Price Volatility: Is Cardano Losing Ground?
Development and Ecosystem Updates
Despite the disruption, Cardano’s development teams rapidly coordinated to stabilize operations. Block producers and DeFi protocols may need several weeks for full recovery, but key infrastructure remains resilient. Recent milestones include:
- Cardano Summit 2025 Recap: Berlin sessions highlighted community engagement, roundtables, and ecosystem collaborations.
- Leios Research Update: IOG’s October report showcased progress toward achieving 300 TxkB/s throughput in simulations.
- Hydra v1 & Intersect Elections: Hydra v1 is production-ready, while ongoing Intersect committee elections strengthen governance structures.
These developments underline Cardano’s commitment to long-term growth and technological advancement despite short-term disruptions.
Market Impact and Future Outlook
The ADA token faces immediate recovery challenges. Breaking the $0.53 resistance level remains critical amid weak money flows, although optimism surrounds the upcoming Midnight launch. Regulatory developments are also in focus, with a potential Cardano ETF delayed due to the U.S. government shutdown impacting SEC reviews.
Also Read: Cardano ETF Delays: Is Institutional Interest Enough to Drive ADA?
Cardano’s network resilience contributed to a broader crypto rebound, alongside Dogecoin, fueled by strong ETF inflows and low exchange balances. Investors and stakeholders are closely monitoring both technical recovery and market sentiment, positioning ADA for potential upward momentum.
