Cardano continues to let down investors on nearly every front.
For years, experts in the crypto space have anticipated a significant breakthrough for Cardano (ADA +5.07%). Sadly, that moment has yet to materialize. Cardano’s value has dropped 30% this year and has plummeted over 80% from its peak of $3.10.
Assessing Investor Demand for Cardano
To understand Cardano’s potential, we should evaluate its demand from both retail and institutional investors. High demand suggests a brighter future for Cardano, while low demand indicates the opposite.
With much excitement surrounding new exchange-traded funds (ETFs) for leading altcoins, Cardano should ideally be thriving. However, this hasn’t been the case; there are currently few upcoming filings for spot Cardano ETFs.
BlackRock (BLK +1.19%), known for its popular crypto ETFs, has yet to apply for a spot Cardano ETF. Investment firm Grayscale does intend to offer one, but that’s pretty much the extent of it.
Current Blockchain Performance
The lack of investor enthusiasm for Cardano can be partly attributed to its reputation as a blockchain where nothing significant occurs. It has even been dubbed a “ghost chain,” suggesting limited real-world utility.
Compared to other blockchains like Ethereum, Cardano’s user activity and transactions are quite low. This is disappointing, especially since Charles Hoskinson, a key figure in creating Cardano, was also a co-founder of Ethereum.
Metrics like Total Value Locked (TVL) serve as key indicators of blockchain usage and activity, especially in decentralized finance. Ethereum holds a commanding 63% of all TVL, while Cardano barely registers. Even newer platforms like Aptos (APT +7.04%) and Sui (SUI +2.98%) have surpassed Cardano, which now ranks 24th overall.
Is Investing in Cardano a Good Idea?
Although Cardano boasts a strong blockchain foundation and maintains a position among the top 10 cryptocurrencies with a $20 billion market cap, it hasn’t capitalized on recent innovations in the blockchain sector since its inception in 2017. The peak value of $3.10 was reached over four years ago, and Cardano has failed to keep pace with advancements in various areas like AI and tokenization.
Given this context, it may be wise to seek alternative investment opportunities. While Cardano might have the potential to double its value to $1 within the next 24 months, aiming for much higher would likely be unrealistic.
