Cardano's ADA token fell by over 6% on June 13 as the community debated a proposed allocation of $100 million from the treasury to boost stablecoin liquidity. Following a peak above $0.68, ADA dropped to $0.6412 before bouncing back slightly. The proposal involves deploying 140 million ADA to enhance liquidity for stablecoins, which some see as critical for strengthening Cardano's DeFi ecosystem. However, concerns were raised about potential selling pressure and market impact from this significant treasury deployment. Influential figures in the community have expressed differing opinions, with some fearing that such plans might be front-run by traders, leading to price declines. Despite these concerns, IOG CEO Charles Hoskinson defended the proposal, arguing it could generate non-inflationary revenue and improve stability within the DeFi sector. The community remains split, with discussions ongoing regarding the best approach to bolster Cardano's position in the market amid current volatility.

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