Cardano’s ADA token has garnered attention in the cryptocurrency community, but not all analysts are convinced of its potential. In a recent YouTube video, an experienced analyst shared her concerns about Cardano and why she chooses not to include it in her investment portfolio. While acknowledging the positive impact of Cardano founder Charles Hoskinson, the analyst raised several key issues that paint a challenging picture for the blockchain network.
One of the primary concerns highlighted by the analyst is the slow and painstaking development process of the Cardano blockchain. She notes that while Cardano’s emphasis on peer-reviewed updates may have its merits, the crypto industry operates at a much faster pace. This methodical approach of Cardano often causes it to lag behind its competitors in terms of technological advancements. In this dynamic industry, losing ground over time can be detrimental to the success and adoption of a blockchain network.
The analyst also drew attention to statistics indicating relatively low usage and adoption of the Cardano network. Compared to other top blockchain networks, Cardano ranked 13th in daily active users, 30th in protocols built on the network, and 15th in total value locked. These metrics suggest that Cardano is not performing as well as its counterparts, raising doubts about its long-term viability and appeal to users and developers.
Another issue raised by the analyst is the slower and more expensive nature of Cardano transactions compared to competitors like Solana and Polygon. While Cardano’s upcoming Hydra upgrade aims to improve transaction throughput, it has yet to live up to expectations. This slower transaction speed and higher cost could deter individuals and businesses from utilizing the Cardano network, further hampering its growth and adoption.
The analyst expressed skepticism about the level of “manufactured hype” surrounding Cardano, particularly concerning its partnership with the renowned marketing agency McCann Dublin. Beyond the hype, she believes there is limited evidence of real-world adoption resulting from the touted government partnerships of Cardano. This raises questions about the actual impact and value of Cardano’s collaborations, casting doubt on its ability to drive widespread adoption.
Finally, the analyst predicts that Cardano may struggle to keep up with a “tidal wave” of new blockchain projects that leverage advanced technologies. She argues that Cardano’s methodical approach may hinder its ability to capitalize on innovations like zero-knowledge proofs, which are considered the next big revolution in blockchains. As these new technologies become more prevalent, Cardano may find itself falling behind its competitors, making it difficult to catch up.
Despite the respect the analyst holds for Cardano’s founder, her analysis raises valid concerns about the challenges faced by the blockchain network. The slow development process, low usage and adoption, transaction speed and cost, manufactured hype, and the threat of advancing technologies all contribute to a less optimistic outlook for Cardano. While it is important to consider multiple perspectives in assessing investment options, these critical insights highlight the need for Cardano to address these challenges effectively to remain competitive in the dynamic blockchain industry.
