In a surprising turn of events, Cardano (ADA-USD) has fallen out of the top 10 cryptocurrencies by market cap. In fact, it once had a nearly $100 billion market cap in September 2021. However, Cardano is now trading at around $0.33 with a market cap of just under $12 billion.
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The cryptocurrency’s decline is largely due to competition from Ethereum (ETH-USD) and the emergence of Layer 2 solutions, according to crypto.news, which has eroded Cardano’s unique advantages. Despite ongoing development, many projects in its ecosystem have struggled and have led to low user engagement and an overreliance on the ADA token.
Additionally, Cardano’s smart contract system has faced criticism for relying on off-chain components, which goes against the idea of true decentralization and poses risks like trapping user funds during disruptions.
Does Cardano Have a Future?
Cardano is trying to regain its footing with upcoming developments like the Chang Upgrade #1, which aims to introduce on-chain governance and push toward full decentralization. While the network’s current challenges have shaken investor confidence, a potential recovery could happen if Cardano strengthens its ecosystem and regains market interest.
Will Cardano Go Back to $3?
Using TipRanks’ technical analysis tool, the indicators seem to point to a negative outlook. Indeed, the summary section pictured below shows that four indicators are Bullish, compared to six Neutral and 12 Bearish indicators.
