Cardano price has just crashed to a record low, leading to an $83 billion wipeout as its market capitalization has plunged from over $90 billion in 2021 to $6.7 billion today.
Why Cardano Price Has Crashed
The ongoing ADA price crash has coincided with the ongoing crypto market plunge that has affected Bitcoin and most altcoins. A closer look shows that most tokens are deep in red.
Still, there is more to this crash than the broader happenings in the crypto industry. This explains why some of Cardano’s top peers like Tron, Solana, and Ethereum have not dropped to its record low.
The main reason why Charles Hoskinson’s flagship crypto project has imploded is that it did not live to the hype. For starters, Cardano became a mainstream name in the crypto industry in 2021 as the ESG craze was spreading.
At the time, investors were highly concerned about Ethereum, which was then a proof-of-work crypto project that emitted substantial amounts of carbon to the environment. Cardano gained popularity because Charles Hoskinson, its creator, was an Ethereum co-founder. It was also peer-reviewed and had better features than Ethereum, including low transaction costs and faster speeds.
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Cardano Did Not Live Up to the Hype
Still, despite its strong promise, Cardano has not lived to the hype. It has no market share in key areas in the crypto industry. It has a total value locked (TVL) of over $120 million in the decentralized finance industry.
Cardano has just $40 million in stablecoin supply, a tiny amount in an industry with over $300 billion in assets. It also has no major market share in the real-world asset (RWA) tokenization industry. All these metrics mean that Cardano is not making money. It made just $362k in fees this year. In contrast, Hyperliquid has made $361 million in assets.
Most of Charles Hoskinson’s efforts to boost Cardano have not worked out. For example, the recent Midnight mainnet launch has not led to more activity to the network.
Similarly, the decision to bring up Pyth Network as the main oracle to the ecosystem has not worked out. It has not attracted any developers to the network since the integration.
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