As the Cardano (ADA) price struggles and falls out of the global top 10 crypto rankings, investors are left wondering if it is still worth holding onto their ADA holdings. The current price of ADA hovers just above $0.50, down close to 3% on the day. Despite a recent rebound from mid-month lows, ADA’s market cap sits around $17.8 billion, ranking it as the 11th largest cryptocurrency. However, ADA lags behind competitors like Toncoin (TON) and Dogecoin (DOGE) with market caps of $19.8 billion and $23.2 billion respectively.
When compared to other major cryptocurrencies, Cardano’s performance in recent months falls short. While ADA is up 25% versus recent lows, it is still down over 20% monthly and more than 15% yearly. In the past 90 days, Cardano has dropped by 15%, while Bitcoin (BTC) has seen a 57% increase. Ether (ETH), BNB (BNB), and Solana (SOL) have all experienced gains between 40-100% over the same period. The struggle for Cardano lies in its ability to achieve real-world adoption, with on-chain metrics showing a lack of active users and total value locked (TVL) significantly lower than its competitors.
Adoption and Transactions
Cardano’s blockchain boasts a mere $416 million in TVL compared to the over $10 billion locked on the Solana blockchain. Daily transaction counts also paint a bleak picture for ADA, with Cardano rarely seeing over 100,000 transactions in a day. In contrast, Bitcoin has recorded between 300,000 and 750,000 daily transactions over the past year. Ethereum and Solana far outstrip Cardano in this regard, with Ethereum averaging over 1 million daily transactions and Solana seeing between 15-30 million. Cardano’s critics have labeled it a “ghost chain” due to these low adoption and transaction numbers.
As long as Cardano continues to struggle with adoption, it is likely to fall behind its major peers in the crypto market. Bitcoin’s potential to reach $100,000 this year, coupled with slow supply growth and ETF demand, could further push ADA down. The ADA/BTC exchange rate may drop close to its lows from late 2019, around 0.000004. Without faster adoption, ADA may face challenges in reaching back above $1 in the current bull market. However, Cardano remains hopeful as numerous ambitious projects are in development, with the potential to change its fortunes if successful.
Investment Opportunities
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The future of Cardano remains uncertain as it grapples with low adoption rates and transaction volumes compared to its competitors. While the current outlook may seem bleak for ADA, the potential for turnaround exists if the blockchain can successfully attract more users and projects. Investors should carefully assess the risks and rewards of holding Cardano in their portfolio, considering the volatile nature of the crypto market and the ongoing challenges faced by ADA in achieving widespread adoption.