Blog

Cardano, one of the common blockchains, can also be a extremely controversial one as considerations about its ecosystem development stay. Some crypto watchers imagine that it’s a extremely overvalued undertaking whereas others argue it’s a ghost chain. 

Is Cardano a ghost chain?

A ghost chain is outlined as a crypto undertaking that has nothing occurring in its ecosystem. And there are such a lot of such chains within the crypto business. Some of the highest ghost chains are Kadena, Velas, and XDS Network 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 prospering even because the crypto winter continues. Data compiled by DeFi Llama reveals that Cardano’s TVL has jumped to $227 million, making it the 14th greatest chain on this 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.

Further, Cardano additionally has many customers. As proven beneath, the community is averaging over 30k every day customers. Most ghost chains hardly ever have any customers.

Cardano can also be lively within the NFT business. Data by CryptoSlam reveals that the full gross sales of Cardano NFTs prior to now 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

Therefore, we will conclude with out a doubt that Cardano is just not 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 greater than American Airlines, Lazard, and Moelis. 

The greatest 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 largest gamers in industries like tokenization, stablecoins, and DeFi. Instead, large gamers like AAVE, Uniswap, and PancakeSwap have moved to L2 networks.

How to purchase Cardano