- Cardano faces scrutiny as Forbes analysts label it a “zombie” project alongside other cryptocurrencies like XRP and ETC, citing declining user activity despite significant speculative attention.
- The drop in wallet activity and weakness in the DeFi space raise concerns about Cardano’s future, while its slipping market ranking underscores challenges ahead amidst an uncertain crypto market.
Cardano (ADA) is under scrutiny as Forbes analysts recently labeled it, along with other cryptocurrencies like Ethereum Classic (ETC) and Ripple (XRP), as “zombie” projects. This term refers to blockchains that struggle without signs of life, despite having notable user bases and purported real-world utility.
Sorry but I laugh. 🤣🤣🤣
— Gavel (@GavelCoding) April 28, 2024
Forbes has identified a group of 20 cryptos, dubbed “zombie blockchains,” that maintain high market valuations despite showing little to no real-world utility or user adoption.
The list includes well-known names such as Ripple (XRP), Cardano (ADA),…
While these assets have shown resilience and have even generated profits through significant ICOs and speculative trading, they often fall short of fulfilling their promises regarding practical and technical goals.
Forbes pointed out that speculative attention in ADA may be fueled by the popularity of its founder, Charles Hoskinson. However, recent data suggests trouble brewing for Cardano.
Santiment, an on-chain analytic platform, revealed a substantial plunge in ADA’s wallet activity, raising concerns about the reasons behind this decline and its potential impact on the token’s price trajectory. When compared to other top cryptocurrencies, Cardano emerged as one of the few blockchains experiencing a decrease in active users.
Moreover, Cardano displayed weakness in the decentralized finance (DeFi) space, with significant dips observed in total value locked (TVL) since March 16. This metric currently stands at $297.21 million, reflecting a downward trend.
As of the time of writing, Cardano is trading at $0.4682, marking a 2.21% increase over the past 24 hours. However, despite this short-term uptick, ADA has seen increased bearish sentiment over the past month, losing nearly 29% of its value.
This underperformance has caused Cardano to slip in crypto rankings by value, with Toncoin overtaking it. ADA now occupies the 10th spot, with a market capitalization of $16,709,949,737.
📊 The total amount of non-empty #Bitcoin wallets are rapidly growing despite choppy prices. #Altcoin wallets for assets like #Dogecoin have flattened after enormous rises earlier this year. #Cardano is one of the few networks to see active wallets drop. https://t.co/itg9qMes7c pic.twitter.com/yrOlEQw3jy
— Santiment (@santimentfeed) April 27, 2024
The fading user activity observed in Cardano may signal a diminishing interest in the altcoin, painting a bearish picture for its future prospects. However, it’s essential to note that the overall crypto market currently displays uncertainty, with unclear direction. In such conditions, waned user activity is not uncommon.
As the cryptocurrency market continues to evolve, investors and analysts will closely monitor Cardano’s performance to assess its long-term viability and potential to deliver on its promises of innovation and utility.
