Cardano is not a ghost chain, but it is highly overvalued.

Cardano is not a ghost chain, but it is highly overvalued.

The Growing Ecosystem of Cardano: Debunking the Ghost Chain Myth

Cardano has consistently drawn both praise and criticism within the blockchain industry. While some crypto enthusiasts question its valuation and label it as a ghost chain, a closer examination of its metrics reveals a thriving and expanding network.

Defining a Ghost Chain

A ghost chain refers to a crypto project that lacks activity within its ecosystem. Numerous ghost chains exist in the crypto industry, including Kadena, Velas, and XDS Network, among others. These projects often fail to gain traction and attract users.

Cardano’s Ecosystem Growth

Contrary to being a ghost chain, Cardano’s ecosystem is experiencing steady growth. Notably, its DeFi ecosystem continues to flourish even during the crypto winter. Data compiled by DeFi Llama indicates that Cardano’s Total Value Locked (TVL) has surged to $227 million, positioning it as the 14th largest chain worldwide.

In ADA terms, Cardano’s TVL has reached an all-time high of over 750 million ADA coins. This growth can be attributed to the increasing number of DeFi protocols on Cardano, including platforms like MuesliSwap, MinSwap, SundaeSwap, and Indigo. These platforms have garnered significant traction and contributed to the overall expansion of Cardano’s ecosystem.

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Furthermore, Cardano boasts a substantial user base, as evidenced by its average of over 30,000 daily users. This is a stark contrast to most ghost chains, which often struggle to attract any meaningful user activity.

Additionally, Cardano has made strides in the NFT industry, with CryptoSlam data indicating that its NFT sales totaled $277,000 in the past 24 hours. This places Cardano as the eighth-largest player in the market, following Ethereum, Polygon, Mythos, Immutable X, BNB Chain, and Bitcoin.

Valuation and Competitiveness

While it is clear that Cardano is not a ghost chain, its valuation remains a subject of debate. According to CoinMarketCap, Cardano is currently valued at over $10 billion, down from its peak valuation of over $90 billion.

Considering the significant valuation, it becomes challenging to justify Cardano’s current market value. At $10 billion, Cardano surpasses the valuations of established companies such as American Airlines, Lazard, and Moelis.

Furthermore, Cardano faces stiff competition within the blockchain landscape, particularly from layer-2 networks such as Arbitrum, Polygon, Base, and Optimism. These networks have attracted prominent players in tokenization, stablecoins, and DeFi, while Cardano has struggled to capture their attention. AAVE, Uniswap, and PancakeSwap, for instance, have opted to move to Layer-2 networks instead of joining Cardano’s ecosystem.

Acquiring Cardano: A Guide for Investors

For those interested in investing in Cardano, there are several avenues to acquire the cryptocurrency. Here are some common methods:

1. Cryptocurrency Exchanges: Cardano is available on various exchanges, including Binance, Coinbase, Kraken, and Huobi. Investors can create an account on these platforms, deposit funds, and trade for Cardano.
2. Decentralized Exchanges (DEX): DEXs, such as Uniswap and PancakeSwap, offer a decentralized and permissionless approach to trade Cardano directly from the user’s wallet.
3. Peer-to-Peer (P2P) Trading: Platforms like LocalBitcoins and Paxful enable users to buy Cardano directly from other individuals, facilitating secure peer-to-peer transactions.

Before acquiring Cardano, investors should conduct thorough research, analyze market trends, and consider the potential risks associated with investing in cryptocurrencies.

In conclusion, the notion of Cardano as a ghost chain does not hold up to scrutiny. Its growing ecosystem, thriving DeFi protocols, substantial user base, and active participation in the NFT market are clear indicators of its success. However, the valuation remains a point of contention, and Cardano faces formidable competition from layer-2 networks. As the blockchain industry continues to evolve, Cardano’s ability to adapt and attract significant players will be crucial to its long-term success.

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