Cardano, one of the well-liked blockchains, can also be a extremely controversial one as issues about its ecosystem progress stay. Some crypto watchers imagine that it’s a extremely overvalued challenge whereas others argue it’s a ghost chain.
Is Cardano a ghost chain?
A ghost chain is outlined as a crypto challenge that has nothing happening in its ecosystem. And there are such a lot of such chains within the crypto trade. Some of the highest ghost chains are Kadena, Velas, and XDS Network amongst others.
Cardano, alternatively, can’t be outlined as a ghost chain as a result of its ecosystem is rising. For instance, its DeFi ecosystem is prospering even because the crypto winter continues. Data compiled by DeFi Llama exhibits that Cardano’s TVL has jumped to $227 million, making it the 14th largest chain on the earth.
In ADA phrases, Cardano’s TVL has jumped to an all-time excessive of over 750 million ADA cash. This progress has been pushed by the rising variety of DeFi protocols in Cardano and the efficiency of platforms like MuesliSwap, MinSwap, SundaeSwap, and Indigo.
Further, Cardano additionally has many customers. As proven under, the community is averaging over 30k day by day customers. Most ghost chains hardly ever have any customers.
Cardano can also be energetic within the NFT trade. Data by CryptoSlam exhibits that the overall gross sales of Cardano NFTs previously 24 hours totaled $277k, making it the eighth largest participant within the trade after Ethereum, Polygon, Mythos, Immutable X, BNB Chain, and Bitcoin.
Cardano’s valuation is stretched
Therefore, we are able to conclude with out a doubt that Cardano shouldn’t be a ghost chain. Instead, I imagine that Cardano is simply extremely overvalued. According to CoinMarketCap, Cardano is valued at over $10 billion. At its peak, it was valued at over $90 billion.
Despite the drawdown, it’s arduous to clarify this valuation since $10 billion is a lot of cash. Its valuation signifies that Cardano is valued larger than American Airlines, Lazard, and Moelis.
The largest problem is that the ecosystem is getting extremely aggressive. Most of this competitors is coming from layer-2 networks like Arbitrum, Polygon, Base, and Optimism amongst others.
Cardano has additionally failed to draw the most important gamers in industries like tokenization, stablecoins, and DeFi. Instead, massive gamers like AAVE, Uniswap, and PancakeSwap have moved to L2 networks.
