Many crypto analysts have a list of crypto tokens that they expect to make a run when the bull market returns. Sadly, Cardano (ADA) hasn’t made the list as crypto analyst Lady of Crypto has outlined five reasons why the crypto token will not perform well during that period.
Cardano’s Flaws Might Be ADA’s Downfall
In a video posted on her YouTube channel, the first reason she stated was that Cardano had a slow development pace and that it could not thrive in a fast-paced crypto industry. She alluded to the time when the blockchain network experienced a delay in the Vasil hard fork and other times when there have been network congestions and an increase in transaction fees.
According to her, Cardano is going to continue to fall behind its competition until one day when the network becomes “insignificant.”
Secondly, Lady of Crypto mentioned that no one was using the Cardano blockchain. She used data from the crypto analytics platform DefiLlama to drive home her point. Her assertion was based on the daily active users, protocols built on the network, and network’s total value locked (TVL), of which Cardano ranked 13th, 30th, and 15th, respectively, at the time of her making the video.
While these rankings might not be bad, she noted that it is bad for Cardano, which positions itself as one of the “blue-chip cryptos” as it suggests that it is underperforming.
The third reason seemed to relate to her first reason, as she noted that Cardano was slow and expensive compared to its competitors. She noted that Cardano’s average transaction speed is 20 seconds, which is slower than other networks like Ethereum, Solana, Arbitrum, Polygon, and Avalanche. Transaction fees on the network are also expensive compared to those other networks.
ADA recovers to $0.26 | Source: ADAUSD on Tradingview.com
Cardano Is Overhyped
The Lady of Crypto went on to the fourth reason, where she stated that the network was overhyped, and although the adjective may be subjective, she doesn’t believe that applies in this case.
She noted that Cardano has a partnership with McCann Dublin, a global advertising and marketing agency, which has helped to bring about this “manufactured hype” alongside the help of the network’s “cult following.” She suggested that all this hype was just talk, as there was no substance to back it up.
The last reason is the fact that Cardano doesn’t seem to have any real-world adoption. Although the blockchain company has at different times announced partnerships with governments and institutions, the tangible results of these partnerships are non-existent.”
Despite her position on ADA, the Lady of Crypto, at different times, showed her respect for Cardano’s founder, Charles Hoskinson, and mentioned that she was down to have a chat with him where he rebuts her stance on the network’s ecosystem.
Featured image from U Today, chart from Tradingview.com
Credit: Source link
