Cardano’s ADA May Struggle in the Bull Market, Analyst Says
A crypto analyst recently expressed skepticism about the performance of Cardano’s ADA cryptocurrency in the current bull market. While emphasizing that her views are not financial advice, she based her analysis on her own observations. Although she has respect for Cardano’s founder, Charles Hoskinson, she does not extend that admiration to ADA.
Slow Development Pace
The analyst criticized Cardano for its slow development process, citing multiple delays and occasional congestion events that result in delays and increased fees. She believes that Cardano’s peer-reviewed approach to development will cause it to fall behind competitors, becoming increasingly insignificant over time.
Low User Engagement
Cardano ranks 13th in daily active users and 30th in protocols, indicating a lack of engagement and development activity. The analyst argues that this could lead to Cardano becoming irrelevant. Additionally, Cardano ranks 15th in Total Value Locked (TVL), a measure of trust and usage in the DeFi space.
Performance Metrics
The analyst highlights that Cardano’s average transaction latency is slower than Ethereum and significantly slower than competitors like Solana and Polygon. Transaction fees on Cardano are also relatively high compared to other platforms.
Overhyped and Lacking Substance
The analyst accuses Cardano of being overhyped, attributing this hype to its partnership with McCann Dublin, an advertising and marketing agency that went bankrupt in April 2023. She believes that the hype is not backed by substantial development or adoption.
Lack of Real-World Adoption
The analyst criticizes Cardano for its lack of real-world adoption despite various partnership announcements, especially in Africa. She contrasts this with other platforms like Polygon that have established partnerships with major companies.
Future Prospects
The analyst believes that Cardano will continue to lag behind, especially in 2024 and 2025, as new and innovative blockchain technologies emerge. She predicts that Cardano will struggle to keep up.
Hot Take: ADA Faces Uphill Battle in Bull Market
While some may have high hopes for Cardano’s ADA cryptocurrency, a crypto analyst raises valid concerns about its performance. Slow development, low user engagement, underwhelming performance metrics, overhyping without substance, and a lack of real-world adoption all contribute to ADA’s potential struggles. As the bull market continues, it remains to be seen whether Cardano can overcome these challenges and gain traction against its competitors. However, the analyst predicts that Cardano will face an uphill battle in the coming years as new blockchain technologies emerge.
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