ADA, the native Cryptocurrency of the Cardano network, has not seen any significant changes in its price after the Chang hardfork was activated. The asset’s price is 89% below its all-time high and investors are showing their discouragement about its performance in 2024, compared to Bitcoin (BTC) and other cryptocurrencies.
As CriptoNoticias already reported, the hardfork Chang It is a network update Cardano which will mean that this environment will no longer be managed by the company IOHK, founded by Charles Hoskinson. From now on, Governance in this ecosystem is decentralized and managed by its own community.
The network was founded in 2015 by Hoskinson and Jeremy Wood and was created as an alternative to Ethereum/” target=”_blank” rel=”noreferrer noopener”>EthereumIt is an open source ecosystem, based on technology Bitcoinwhere all transactions of its native currency ADA are processed, verified and recorded.
This update was driven with the goal of having ADA holders participate in decision makingIt is part of a process that will be completed in the coming months, which includes improvements to increase transaction processing capacity from the current 250 transactions (TPS) to more than 1,000.
Although the hardfork generated certain bullish expectations, at the time of publication of this note The market did not react as expected and the ADA price is at $0.32So far in 2024, the native cryptocurrency of the Cardano network is up 28% but is 89% below its ATH, as seen in the following chart:
ADA price from 2021 to September 2, 2024. Source: TradingView.
As a result of poor performance, ADA was displaced of the top 10 largest digital assets on the market by TRX, the cryptocurrency of the Tron network. Currently, its market capitalization sits below $12 billion.
ADA dropped out of tenth place in the ranking of cryptocurrencies with the largest market capitalization. Source: CoinMarketCap.
Amidst discouragement from his investors, Dan Gambardello, founder of the investment firm Crypto Capital Venture, believes that the Chang fork is something relevant for this ecosystem and stands out: “It’s not just another update; it’s a true turning point in the history of cryptocurrencies.” He further says:
“Cardano could very well redefine what it means to be a leading Blockchain-based network, potentially attracting more developers, users and investors.”
Dan Gambardello, founder of the investment firm Crypto Capital Venture.
He also believes that the update is important so that Cardano begins to be seen as a project run by its own participants and not by a company“It’s not just about faster transactions or lower fees. It’s about unleashing the power of true decentralization,” Gambardello says.
Meanwhile, Ben Armstrong, the cryptocurrency market influencer known as BitBoy Crypto, Binance.com/es-LA/square/post/8791236839265″>analyzed Cardano’s performance against other networks and argued that the difference is that “they are exploding and getting a lot of recognition, while the average person can’t name three projects on ADA.”
He added: “The markets are telling us very clearly: look where the big money is and where it is going… ADA is being left out.”
For him, another issue to consider is that Cardano’s late arrival “to the group means that it faces an arduous task against competitors that hinder its ability to attract and retain users.”
He Cardano’s total value locked (TVL) is currently $188 milliona figure that is far from Ethereum’s $47 billion, the Tron network’s $8 billion, and Solana’s $4.7 billion.
According to data from DefiLlamaCardano’s TVL in March was $490 billion, meaning it dropped by more than 50%. For Armstrong, it is a reflection of the loss of confidence among investors and users.
Investors’ discouragement
For users, the network created by Charles Hoskinson must face several obstacles so that the project has the ability to show its full potential within the world of cryptocurrencies.
In various debates on the social network Redditseveral of them expressed their discontent due to the cryptocurrency’s poor performance throughout 2024. One of them revealed that he has had better returns trading “random shitcoins” than ADA.
In line with Armstrong, other members believe that one of the problems is the Lack of a marketing strategy to communicate the benefits and functionalities of Cardano. Regarding this, Reddit user DesignDry4936 said:
“It’s not that people aren’t trying, but it seems like teams are promoting the wrong features. Cardano doesn’t need memes or activity bragging. This network is as secure as Bitcoin, it’s resistant to hacking, it withstands DDOS attacks, and it NEVER has any downtime. That’s what Cardano should boast about. The only smart contract blockchain that keeps people’s funds safe!”
DesignDry4936, Cardano community member on Reddit.
Besides the lack of a marketing strategy, another disadvantage is the technical complexity of the project, based on its scientific approach and development in academic research. “Maybe technical stupidity is not enough for a project to be successful? Usually it is, but the price of an asset does put a damper on that feeling, especially when you have so many competitors who shine when it comes to price action,” analyzed.
In the forums, it was also discussed Competition within the decentralized finance (DeFI) spacean area in which Cardano is still working to develop and consolidate the ecosystem. “We are falling behind in the DeFi space. We need to accelerate our efforts to not lose ground,” said another member.
Despite this discouragement, Armstrong believes it is premature to write off Cardano and believes its holders could spark its rebirth. “Will Cardano rise from the ashes and redefine its path, or will it fade into obscurity as another ambitious project that couldn’t keep up? Only time will tell, but Cardano’s story is far from over,” he said.
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