Cardano: Is There a Risk of Relegation from the Top 10 of the Most Important Altcoins?

The well-known crypto expert Eric Wall predicts that Cardano (ADA) will lose its usual place among the 10 most capitalized cryptocurrencies in 2024. Is Cardano really trapped in a downward spiral?

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The crypto scene is once again debating the future prospects of Cardano (ADA)

The dispute was triggered by Eric Wall, a well-known Bitcoin supporter and crypto expert. Because Wall has included Cardano in his list of predictions for the crypto year 2024 on X with the note “Will fall out of the TOP 10”. Cardano founder Charles Hoskinson responds to X with derision and tries to ridicule the forecast. But what is really the situation with Cardano?

ADA is currently trading at around $0.50 and has increased by around 25 percent over the last twelve months. The data service CoinGecko measures Cardano’s market capitalization at a good $17 billion, putting it in 9th place in the prestigious TOP 10 of the most important cryptocurrencies. Ripple (XRP) with a market capitalization of over $27 billion has raced upwards, while Chainlink (LINK) and Polygon (MATIC) are pushing towards the top 10 from below. Wall thinks that Polygon will win the race.

The well-known problem of Cardano is the lack of monetary use cases

In the targeted decentralized finance (DeFi) sector, Cardano remains a lightweight with around $440 million TVL and there is no trend reversal in sight. For comparison: According to DeFiLlama, Polygon has a TVL of $1.2 billion in DeFi, which is almost three times as much invested capital as Cardano.

In the NFT sector, in which Cardano also expected opportunities, the differences are even more stark. CryptoSlam records sales of Polygon NFTs for $92 million in the last 30 days and just under $5 million for Cardano NFTs. The cryptocurrency cannot benefit from the recovering NFT markets .

Hoskinson, as Cardano’s mouthpiece, repeatedly invokes the large number of developers working on ADA projects. Santiment collects data here and actually regularly sees Cardano among the three most active crypto projects. The infamous ADA Whales, i.e. large investors, have recently seen capital shifts, particularly towards Solana (SOL) .

Conclusion: Cardano has to fear competition

Eric Wall was already one of the warning experts in autumn 2021 who showed why the smart contracts introduced at the time were not practical for ADA. This assessment has largely been confirmed, as the disappointing DeFi numbers for Cardano show. At the beginning of 2022, voices became increasingly louder that accused Cardano and Hoskinson of fueling excessive expectations (“vaporware”).

One thing is clear: Hoskinson and the community’s tactic of countering criticism with counterattacks is not working – statistics speak a neutral language. In the ranking of the most important cryptocurrencies, Cardano really has to worry about being overtaken because ADA is far too rarely linked to promising use cases.

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(Featured image by Traxer via Unsplash)

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