After stealing the thunder of cryptocurrency in September 2021, Cardano fell about 90%. Its native token, ADA, lost its position in the top 10 cryptocurrencies as a result of significant losses in market capitalization.
This slump in market share sends quite a few questions running through the minds of people: what about the future of the Cardano platform and are its highly talked-about smart contracts good enough?
The Rise And Fall Of Cardano
Cardano was riding high back in 2021. The Alonzo upgrade was supposed to make it a main event player due to the introduction of smart contracts. In that flush of excitement, ADA surged as high as around $3.10.
Fast-forward to the present, and that excitement has vanished. ADA has plunged to about $0.49, with further falls predicted by many analysts. When the first optimism around the has worn off, and many wondered whether they had played a role in the decline of the platform.
Whereas the smart contracts of Cardano were meant to open the floodgates, the reality on the ground is rather not up to speed as expected. Most developers have had difficulties in deploying their applications, and the explosion of dApps was expected but not realized. The slow development has frustrated investors and developers alike, causing the erosion of confidence in the platform.
ADA market cap currently at $11.5 billion. Chart:
Competition And Market Sentiment
The intense rivalry in the DeFi area further fuels the hardships. From its initial inception, well-known platforms like Ethereum and Binance Smart Chain had already been able to build high-functioning ecosystems for Cardano, therefore rendering many things quite challenging.
Making matters worse, it rolled out some major projects-including the Hydra scaling solution-painfully slow. Although there has been some progress on Cardano, it generally falls behind the very high expectations set during its earlier days.
Cardano also suffered due to market pessimism. The cryptocurrency markets are unstable, susceptible to global economic fluctuations, and speculation. Interest by cryptocurrency investors in ADA waned as the price continued lower.
Reaction To Hoskinson’s Bitcoin Remarks
Meanwhile, in recent days, Bitcoin community prominent figure Tuur Demeester got into a spat with Cardano founder Charles Hoskinson. The latter had made some pretty provocative comments about Bitcoin.
Classic projection. In just 3 years time, Cardano went from 10% of bitcoin’s market cap to a paltry 1%.
— Tuur Demeester (@TuurDemeester)
Hoskinson was quoted to have insinuated that the cryptocurrency industry doesn’t necessarily need Bitcoin, going as far as to predict that a more secure “digital gold” would emerge and make Bitcoin as obsolete as the Windows operating system, which has seen more forward-thinking platforms like iOS and Android eclipse its importance.
Demeester took Hoskinson to task, underlining the irony of his comments by indicating the shrinking market presence of Cardano. He said had fallen from 10% of Bitcoin’s to just 1% in the last three years.
This aspect in turn hikes up the pressure on Cardano over its status as one of the major cryptocurrencies. The strong wake-up call from Demeester was that Cardano-from its bright beginning-may struggle much more for survival in today’s fast-changing cryptocurrency environment.
Despite these obstacles, there are signs of recovery. A minor price increase in ADA over the past week suggests that some investors still believe in the coin.
The recent could also have something to do with revitalizing interest in Cardano, including on-chain voting aimed at improving governance. This may provide a better way of involving the community in decision-making and foster more user commitment.
But all is not straightforward and easy from here. Cardano needs to sort out its technical issues, and quicken the pace of development regarding its ecosystem to give it the confidence boost it so desperately needs.
Featured image from Pexels, chart from TradingView
They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.
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Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).
Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!
So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).
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Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.
Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.
So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.
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