Cardano sparks much debate in the crypto industry. Despite its advantages like decentralization and low fees, critics point to its inadequate activity.
Performance Issues of Cardano
Historically, Cardano has shown weak performance compared to other major cryptocurrencies. Its price has decreased from an all-time high of $3.15 in 2021 to $0.60 today, resulting in a loss of over $70 billion in market capitalization. Over the past five years, Cardano's price increased by 405%, while other altcoins such as Binance Coin and Solana experienced growth of 2,930% and 4,636%, respectively. The low engagement of developers and investors negatively affects its standing, as there are currently only 49 DeFi developers on the platform and a total value locked of approximately $348 million.
Development of Cardano's Ecosystem
Cardano is actively working to grow its ecosystem. Among the new projects is Midnight, a privacy-focused sidechain leveraging zero-knowledge proofs. Midnight plans to introduce two new tokens, NIGHT and DUST, with an airdrop expected soon. Furthermore, Cardano is preparing to deploy the Leios upgrade, aimed at significantly increasing network throughput by boosting transaction speeds from 40 to 1,500 TPS. However, it remains too early to tell whether this technology will drive meaningful adoption in sectors like gaming or decentralized finance.
Investment Prospects in Cardano
Technical analysis suggests that Cardano has formed an inverse cup-and-handle pattern, which is a popular bearish continuation sign. Currently, the handle section is being formed. A death cross has also been detected, a common bearish continuation pattern, due to the crossing of the 50-day and 200-day moving averages. As a result, the coin is likely to experience a significant bearish breakdown in the coming weeks, targeting a price of 0.321, representing a decline of over 47% from the current level. Therefore, Cardano is not a suitable investment at this time.
Cardano raises controversies in the crypto industry, and its current performance and future developments question its attractiveness as an investment. It is important to closely monitor its progress and events in the ecosystem.
