Cardano, one of the widespread blockchains, can also be a extremely controversial one as issues about its ecosystem development 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 occurring in its ecosystem. And there are such a lot of such chains within the crypto business. A few of the prime ghost chains are Kadena, Velas, and XDS Community amongst others.
Cardano, however, can’t be outlined as a ghost chain as a result of its ecosystem is rising. For instance, its DeFi ecosystem is flourishing even because the crypto winter continues. Information compiled by DeFi Llama exhibits that Cardano’s TVL has jumped to $227 million, making it the 14th greatest chain on the planet.
In ADA phrases, Cardano’s TVL has jumped to an all-time excessive of over 750 million ADA cash. This development has been pushed by the rising variety of DeFi protocols in Cardano and the efficiency of platforms like MuesliSwap, MinSwap, SundaeSwap, and Indigo.
Additional, Cardano additionally has many customers. As proven under, the community is averaging over 30k each day customers. Most ghost chains hardly ever have any customers.
Cardano can also be lively within the NFT business. Information by CryptoSlam exhibits that the full gross sales of Cardano NFTs previously 24 hours totaled $277k, making it the eighth greatest participant within the business after Ethereum, Polygon, Mythos, Immutable X, BNB Chain, and Bitcoin.
Cardano’s valuation is stretched
Subsequently, we are able to conclude unquestionably that Cardano will not be a ghost chain. As a substitute, I imagine that Cardano is simply extremely overvalued. In response to CoinMarketCap, Cardano is valued at over $10 billion. At its peak, it was valued at over $90 billion.
Regardless of the drawdown, it’s laborious to clarify this valuation since $10 billion is some huge cash. Its valuation signifies that Cardano is valued greater than American Airways, 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. As a substitute, large gamers like AAVE, Uniswap, and PancakeSwap have moved to L2 networks.
