The Cardano Foundation, responsible for the development of the Cardano network, announced its spending for 2024. Despite significant investments, the price of the ADA token remains below the levels reached last year.
Cardano Foundation Expenses
In its new report, the Cardano Foundation announced it spent $15 million on network development in 2024, including a partnership with FC Barcelona. Total expenditures amounted to $29.2 million, of which $22.1 million was allocated for strategic development, including adoption, core operations, and education.
Critical Assessment of Spending Effectiveness
Despite significant investments, ADA's price has not shown the expected growth. Cardano Foundation CEO Frederik Gregaard stated that the focus is on maintaining a sustainable balance between costs and income to maximize impact on the ecosystem.
Current State of ADA Price
The price of the ADA token has decreased by 50% from its peak of $1.32 in November of last year. Notably, Cardano has only 49 developers, and its total value locked stands at $348 million. In comparison, Solana boasts over 230 dApps with a total value locked of over $20 billion.
Thus, while the Cardano Foundation has invested significant resources into the development of its network, the lack of active interest from developers and users continues to negatively affect the price of ADA.
