Five Reasons Cardano's ADA May Lag in This Bull Market, Says Analyst
A popular crypto analyst recently shared her skepticism about Cardano’s ADA performing well in the ongoing bull market. She clarified that her views are not financial advice but are based on her own analysis and observations. She also mentioned her respect for Charles Hoskinson, Cardano’s founder, but emphasized that her admiration for him doesn’t extend to the ADA cryptocurrency.
Slow Development Pace
The analyst criticized Cardano for its slow development process. She pointed out that the network has experienced multiple delays, including the postponement of the Vasil hard fork due to technical issues. She also mentioned that the network suffers from occasional congestion events that result in delays and increased fees. According to her, Cardano’s slow, peer-reviewed approach to development will cause it to fall behind its competitors, becoming increasingly insignificant over time.
Low User Engagement
The analyst noted that Cardano ranks 13th in daily active users and 30th in protocols, which refers to the number of projects being built on the platform. She argued that these metrics indicate a lack of engagement and development activity, which could lead to Cardano becoming irrelevant. Additionally, she pointed out that Cardano ranks 15th in Total Value Locked (TVL), a measure of trust and usage in the DeFi space.
Performance Metrics
The analyst stated that Cardano’s average transaction latency is 20 seconds, which is slower than Ethereum and significantly slower than other competitors like Solana and Polygon. She also highlighted that Cardano’s transaction fees are relatively high compared to other platforms.
Overhyped and Lacking Substance
The analyst accused Cardano of being overhyped, largely due to its partnership with global advertising and marketing agency McCann Dublin (which went bankrupt in April 2023). She argued that the hype is manufactured and not backed by substantial development or adoption.
Lack of Real-World Adoption
Lastly, the analyst criticized Cardano for its lack of real-world adoption. She mentioned that although Cardano has announced various partnerships, especially in Africa, these have yet to show significant real-world impact. She contrasted this with other platforms like Polygon, which have established partnerships with major companies.
Future Prospects
The analyst also touched upon Cardano’s future, stating that she believes the platform will continue to lag behind, especially in 2024 and 2025. She mentioned that new and innovative blockchain technologies are on the horizon, and Cardano will struggle to keep up.
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