Many experts in the cryptocurrency industry have compiled lists of tokens that they believe will perform well once the bull market returns. However, Cardano (ADA) has been excluded from these lists due to several reasons outlined by crypto analyst Lady of Crypto. In a video posted on her YouTube channel, she highlights five key flaws in Cardano’s blockchain network that might hinder its performance during the anticipated bull run.
The first reason she provides is Cardano’s slow pace of development. Lady of Crypto refers to instances such as the delay in the Vasil hard fork and network congestions that have occurred, resulting in increased transaction fees. She argues that Cardano cannot thrive in the fast-paced crypto industry and predicts that it will continue to fall behind its competitors, potentially becoming insignificant in the future.
Secondly, Lady of Crypto points out that Cardano’s blockchain is currently underutilized. She gathers data from the crypto analytics platform DefiLlama, which shows that Cardano ranks 13th in terms of daily active users, 30th in protocols built on the network, and 15th in total value locked (TVL) at the time of her video. Although these rankings may not be inherently negative, they indicate that Cardano is underperforming compared to other prominent cryptocurrencies, which positions itself as one of the “blue-chip cryptos.”
The third reason she presents is closely related to the slow development of Cardano. Lady of Crypto emphasizes that Cardano is slower and more expensive compared to its competitors. The average transaction speed on Cardano is 20 seconds, which is slower than networks like Ethereum, Solana, Arbitrum, Polygon, and Avalanche. Additionally, transaction fees on the network are higher compared to these other networks, further hindering Cardano’s ability to compete effectively.
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Moving on, Lady of Crypto argues that Cardano is overhyped. While acknowledging that the term “overhyped” can be subjective, she believes it applies to Cardano due to a manufactured hype campaign. Cardano’s partnership with McCann Dublin, a global advertising and marketing agency, has contributed to this hype, along with its cult-like following. However, Lady of Crypto asserts that this hype is merely talk without substantial evidence to support Cardano’s claims.
Finally, Lady of Crypto points out Cardano’s lack of real-world adoption. Despite the blockchain company’s announcements of various partnerships with governments and institutions, there are no tangible results to demonstrate widespread adoption of Cardano’s technology.
Although Lady of Crypto presents these concerns about Cardano, she also expresses respect for Cardano’s founder, Charles Hoskinson. She indicates that she is open to having a conversation with him to discuss and potentially challenge her stance on Cardano’s ecosystem.
It is important to note that these criticisms and concerns do not reflect a definitive verdict on Cardano’s future performance. Cryptocurrency markets are highly unpredictable, and the landscape can change rapidly. Investors and enthusiasts should conduct their own research and consider multiple perspectives before making any investment decisions.
In conclusion, Cardano’s exclusion from some analysts’ lists of tokens expected to perform well during the next bull market is attributed to several reasons. These include the perceived slow pace of development, underutilization of the blockchain network, slower transaction speeds, higher transaction fees compared to competitors, potential overhype, and a lack of real-world adoption. However, it is essential to approach these criticisms with caution and consider diverse opinions when evaluating the potential of any cryptocurrency.
