Cardano: A Cryptocurrency with Divided Opinions
Cardano (ADA) is a controversial cryptocurrency. supporters see it as the future due to its speed, low costs, and decentralization. It’s also the only peer-reviewed crypto project. However, critics call it an overvalued chain with little activity.
Cardano’s price has dropped from $3.15 in 2021 to $0.60 today. This decline wiped out over $70 billion in market cap. In the last five years, Cardano’s price rose by 405%. But Binance Coin (BNB) and Solana (SOL) jumped by 2,930% and 4,636%, respectively.
Cardano’s underperformance is due to low developer and investor engagement. It has just 49 DeFi developers and a TVL of $348 million. Solana has 232 dApps and a TVL of over $20 billion. Binance smart Chain has 904 apps and a TVL of $8.4 billion. Decentralized exchange protocols on Cardano recorded $98 million in volume over the past 30 days. This is far below BSC’s $178 billion and Solana’s $61 billion.
Cardano is working to grow its ecosystem. It’s building Midnight, a privacy-focused sidechain. ADA holders will receive NIGHT tokens. The Leios upgrade aims to boost transaction speeds from 40 TPS to 1,500 TPS. However, it’s too early to tell if this will drive adoption.
Technical analysis suggests a bearish continuation. The coin is likely to experience a strong bearish breakdown in the coming weeks. the next target is 0.321, a decline of over 47% from the current level.This means Cardano is not a suitable investment at this time.
