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?
Read more on the subject and find he latest business news from around the world with the Born2Invest mobile app.
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.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us
Germany Has Legalized the Possession and Cultivation of Cannabis
The legalization of cannabis in Germany opens new perspectives for responsible consumption, market regulation and protection of society, especially its...
Nina Capital Opens a New Investment Vehicle of 50 Million
Nina Capital registers a third financing vehicle with fifty million euros, focusing on investments between 200,000 and two million euros...
WeAreStarting and Finnexta Obtain European Authorization to Operate as Crowdfunding Platforms
Consob and the Bank of Italy continue authorizing Italian crowdfunding platforms under new European regulations. Recently approved platforms include WeAreStarting...
Why a Financial Black Swan on the Stock Market Remains a Possibility
The stock markets are still spiking, and the way things are going continues to give some credence to a potential...
Dow Jones Daily Volatility’s 200D M/A Broke Below 0.50% this Week
Dow Jones bear markets are volatile markets, lots of days of extreme market volatility (Dow Jones 2% Days), days the...
Fintech2 weeks ago
Lago Partnership with PlusAdvance Launched in 2023 Has Been Renewed
Impact Investing6 days ago
The Negative Impact of the Energy Transition in France on the State Budget by 2030
Biotech2 weeks ago
Biogen Reaches $9.8 Billion in Revenue in 2023, Down 3%
Business4 days ago
This Kevin Harrington-Endorsed Company’s Set to Soar in a Perfect Storm [RDE, Inc. | RSTN]