- A crypto influencer questioned Cardano’s high market value despite lower network utilization.
- Cardano had one of highest ratios between market cap and TVL in the entire space.
Crypto influencers enraged supporters of smart contracts chain Cardano [ADA]This sparked a debate about the basic principles of the network.
What has happened?
In a controversial X (formerly Twitter) post MartyParty questioned why the ADA token had a market value of $23 billion or more despite its much lower network usage.
Influencers have advised their followers to switch from tokens to cash. “performing” The blockchain token is a cryptocurrency.
Cardano’s community was not pleased with Marty’s comments and immediately countered them.
Others called out the data on the number of transactions per second highlighted by the author as being outdated. They added a note to his blog with an updated link. source.
This is not the first
Over the past few years, market watchers have been focusing on Cardano’s ability to network and why it has a larger market capital.
Only last month Bitcoin [BTC] Arthur Hayes, co-founder of BitMeX and advocate for the network, threw shade at it.
Cardano’s community has vigorously rebutted these arguments each time. questioning The TPS is used to measure the performance of the network.
Some have called attention to Cardano’s technical complexity.
What is the merit of this argument?
AMBCrypto evaluated Cardano’s network using Santiment’s asset value metric NVT Ratio. If compared to Ethereum [ETH]In recent months, Cardano’s NVT Ratio was on the low side.
The asset was undervalued if its market value was less than what it is being valued on the network.
Santiment
Cardano’s DeFi has grown at a slower pace than its overall market capitalization.
As of this writing, its total value locked (TVL) was just $418 million according to DeFiLlamaThis is lower than comparable chains.
Click Here to Read Cardano’s [ADA] Price Prediction 2024-25
The findings of this study have caused critics to doubt the potential for building decentralized applications (dApps).
According to a report by Reuters, ADA has fallen 4.5% over the past 24 hours and is currently trading at $0.65. CoinMarketCap.
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Source: ambcrypto.com
