Shocking Report: Cardano Largely Inactive, Says Latest Research
SELL! SELL! SELL!
That’s the message to ADA bag holders from a report published Monday by crypto financial services firm K33.
The report, entitled ‘Why you should sell all your ADA’, claims most of Cardano’s network activity comes from crypto transfers, not from external use cases and that its lengthy history of failing to attract significant use cases indicates there is no chance of the network thriving in the future.
Network Activity Largely Meaningless, Claims Report
In the report, K33 argues that Cardano’s 90,000 average daily transactions are essentially meaningless, with virtually none of them coming from external use cases:
There’s nothing else going on in the Cardano Network than exchange transfers and a group of bagholders fabricating blockchain activity. How can we know this? There is no outside proof of anything going on.
The report goes on to claim the complete absence of major stablecoins, such as Tether (USDT) and USDC, is an important indicator that there’s no real DeFi activity on the network, stating: “no USDT or USDC in a network generally means that no meaningful DeFi occurs”.
Can They Turn The Ship Around?
The report not only says there’s nothing doing on Cardano right now, it also claims “there is no hope” of it ever seeing significant use, citing its long history of failed plans and broken promises.
According to the report authors, Cardano’s lack of gradual, steady growth shows it’s heading the way of other unsuccessful chains, such as IOTA, NEO and EOS and will “drift into irrelevance” over time.
So why is Cardano still so valuable? According to CoinGecko, the market cap of the network’s native token, ADA, currently sits at just under US$19 billion (AU$28.8 billion) , making it the ninth largest cryptocurrency by market capitalisation.
The report claims this large market cap is due to the widespread availability of the token and Cardano’s outdated reputation as “the peer-reviewed research-driven blockchain network”, making it attractive to crypto newcomers. The authors expect these factors to gradually become less appealing over time and the token’s value to decrease.
Cardano Founder Responds…I Guess
Cardano Founder, Charles Hoskinson, gave a fairly unimpressive response to the report, simply saying “Who? Never heard of them”, in a comment on an X post sharing the report — failing to address any of the report’s criticisms:
Unsurprisingly, this response wasn’t generally considered satisfactory, with several X users calling on him to respond to some of the points raised in the report: