Cardano to disappear from the crypto environment
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K33 Research, which predicted Bitcoin's fall after ETF approval, is now urging investors to sell off all ADA (Cardano) holdings. According to analysts, the former leading network is about to be gone for good. Currently, it's ranked 9th in terms of market capitalisation with $17 billion.
Cardano's main problem is the absence of useful activity. The network doesn't support USDT or USDC, and the Djed stablecoin launched last year on the blockchain shows no signs of outer interest. In fact, capitalisation is even declining. Many transactions on the network are due to exchanges and "fabricated activity".
According to K33, activity in the stablecoin market is one of the key purposes for smart contract-enabled networks. On this metric, Cardano's performance equals zero.
Without the support of popular stablecoins in the DeFi sector, the network is unable to show any meaningful results. In terms of total value locked (TVL), Cardano ranks 13th with $329 million. Comparatively, Avalanche has $777 million, and Solana has $1.3 billion. The latter two networks were officially launched later than Cardano but were ahead of the curve due to better solutions.
The high capitalisation is due to previous hopes that the network would grow with the emergence of smart contracts. In 2021, it was ranked third in the overall ranking when talk of an "Ethereum killer" peaked.
But the reality was far harsher. As smart contracts were introduced, the network faced a monstrous overload due to a failed architecture. Since then, the coin has lost 85% of its value, and the chances of returning to the heights it once reached are close to zero.
Cardano is now doing well with smart contract processing, but the time to consolidate its position has long passed. Analysts at K33 believe that this blockchain is a bust and will soon join IOTA, NEO, EOS and Concordium on the list of outsiders.
StormGain Analytical Group
(platform for trading, exchanging and storing cryptocurrency)