Cardano has fallen about 90% after stealing the limelight of cryptocurrency in Sept 2021. Cardano’s native token, ADA lost its place in the top 10 cryptocurrencies due to significant market capitalization losses.
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Despite the decline, many are still wondering about Cardano and its smart contracts.
Cardano’s Rise And Fall
Cardano enjoyed a high-flying ride in 2021. Alonzo was expected to be a major player in the industry due to smart contracts. In the excitement of that moment, ADA soared up to $3.10.
This excitement, however, has now vanished. Analysts predict further declines for ADA. As soon as the initial optimism about the smart contracts Many wondered if their influence on the demise of the platform had worn off.
The smart contracts in Cardano are not as effective on the ground as was expected. Developers have faced difficulties with deploying their apps, and the expected explosion of dApps hasn’t happened. Investors and developers have been frustrated by the slow progress, which has led to a loss of trust in the platform.
Competition and Market Sentiment
Moreover, the intense competition in DeFi is a major factor that aggravates hardships. Cardano was unable to compete with well-known platforms such as Binance Smart Chain and Ethereum from its inception.
The fact that it has been painfully slow in releasing some of its major projects – including the Hydra Scaling Solution – is a further aggravation. Cardano has made some progress, but it is still far behind what was expected in its early days.
Cardano was also affected by the pessimism of the market. Markets for cryptocurrency are inherently unstable and susceptible to fluctuations due to the global economy, as well as speculation. Investors’ interest in ADA waned when the price fell.
Reaction To Hoskinsons Bitcoin Remarks
In recent days, prominent Bitcoin figure Tuur Demeester and Cardano co-founder Charles Hoskinson got into an argument. He had made some provocative remarks about Bitcoin.
Projections are classic. Cardano’s market capitalization has dropped from 10% to just 1% in 3 years. pic.twitter.com/CkfQ0izHcd
— Tuur Demeester (@TuurDemeester) September 2, 2024
Hoskinson has been quoted as saying that Bitcoin is not necessary for the crypto industry. He even went as far to say that there will be a better, more secure cryptocurrency. “digital gold” Bitcoin would become obsolete, just as more advanced platforms such as iOS and Android have eclipsed the Windows Operating System.
Demeester called Hoskinson out, and highlighted the irony by showing the decreasing market share of Cardano. He said ADA’s market cap In the past three years, Bitcoin had dropped from 10% to just 1%.
Cardano is under pressure to maintain its position as a major cryptocurrency. Demeester warned that Cardano – from its early days – may have to struggle more in today’s rapidly changing cryptocurrency market.
Cardano Will Recover.
There are still signs of improvement despite these challenges. The minor increase in ADA prices over the last week indicates that investors are still confident in this coin.
Recently, the recent Chang upgrade Cardano’s governance could be improved by implementing on-chain voting. It may be a more effective way to involve the community and encourage greater user engagement.
All is not easy or straightforward. Cardano must resolve its technical problems and accelerate the development of its ecosystem in order to gain the much-needed confidence.
Featured image is from Pexels and chart by TradingView
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Source: www.newsbtc.com
