This is the first time that we have been able to get to know what is happening in the world.
On May 20, 2024, the cryptocurrency, which was once one of the largest in the market, reached levels close to its historic low, with a quotation below $0.30 — a value that represents an 85% devaluation since its peak in 2021. This negative performance contrasts with the expectation of many who bet on the project for its proposed scalability, governance and academic approach to blockchain development.
The frustration did not go unnoticed by Charles Hoskinson, founder of Cardano and co-founder of Ethereum.Engagement and CollaborationAccording to him, the lack of active participation of ADA holders would be undermining the adoption of the project and its ability to compete in an increasingly accelerated ecosystem.
The founder pointed out that while projects like Solana and XRP have attracted new investors with high performance promises and practical applications, Cardano would have suffered from the “slowness” in implementing solutions and in communicating with the market. “We cannot expect the world to come to us,” Hoskinson said. The speech reflects a delicate moment for the platform, which, despite being technically robust, faces adoption and competition challenges.
From academic promise to market risk: what led the ADA to this situation?
The price of the ADA, which came to be worth more than $3.10 in September 2021, fell to about $0.38 in early May 2024, according to ADA data.CoinMarketCapThis trajectory is not Cardano’s exclusive: several altcoins suffered from the down-cycle of the cryptocurrency market in 2022 and 2023.A sharp decline in relation to their peers.
While Bitcoin (BTC) and Ethereum (ETH) have experienced significant declines but still hold much of the market dominance, Cardano has lost market share more aggressively.CoinGeckoThey show that by May 2024, ADA was only 8th in the market capitalization ranking, far below its position among the top 3 in 2021.messengersThis indicates lower on-chain activity.
Another important factor is the delay in the implementation of promised functions, such asSmart contractsPluto, which were only activated in September 2021 — two years after the launch of the mainnet.Hydra, a scalability solution that promises to increase the network capacity to thousands of transactions per second. However, the adoption of these technologies is still limited, and the market seems no longer willing to wait.
In Brazil, Cardano has a committed community, with Telegram groups and dedicated forums. However, the enthusiasm has cooled. "Invest in ADA for three years for believing in the project, but today I see many unfulfilled promises," commented a user of a Brazilian cryptocurrency forum, who preferred not to be identified. The frustration is shared by several holders, who now look for alternatives in projects with more aggressive roadmaps or immediate use cases.
Solana and XRP steal the scene: where is the money going?
While Cardano faces difficulties, other altcoins have attracted the attention of investors.CoinTribune, Solana (SOL) and Ripple (XRP) have attracted capital in recent months, even in a scenario of widespread decline of Bitcoin and Ethereum. In the period from January to May 2024, Solana accumulated a rise of more than 120%, while XRP rose about 50%.
The solution to Cardano may be precisely in what Hoskinson criticizes: the lack ofThe real adoptionProjects such as Solana have emerged for their ability to process fast and inexpensive transactions, with cases of use in DeFi (Decentralized Finance) and NFTs. XRP, despite its regulatory challenges, remains relevant in the international transfer market, especially after Ripple’s partial victory over the SEC (Securities and Exchange Commission) in the US.
Brazilian analysts point out that the market is increasingly selective. “Investors don’t want more theoretical projects; they want blockchains that deliver tangible results,” explains a Brazilian cryptocurrency analyst.Strategic Partnershipsand use cases that show their value beyond the reserve value role.
What can we expect from Cardano in the coming months?
The ADA trajectory in the coming quarters will depend on three main factors:Adoption of new functions, Institutional adoption e Feelings of MarketHoskinson has already signaled that the team is working on improvements in governance and user experience, as well as releases such as theMidnightBlockchain is focused on privacy.
However, time is an enemy. With the dominance of Bitcoin and Ethereum in the market, Cardano needs to quickly prove that its “scientific blockchain” proposal can translate into mass adoption.
For Brazilian investors, experts recommend caution. "ADA still has a strong community and an interesting ecosystem, but the market does not forgive projects that do not deliver. It is crucial to keep track of on-chain metrics and team updates," warns a Brazilian financial educator who operates in the crypto asset market. Diversification remains the word of order in such a volatile sector.
Meanwhile, Charles Hoskinson continues to charge action. "Either we make it happen, or someone will do it in our place," he recently stated. The phrase summarizes Cardano's current challenge: to regain not only the price, but the confidence of a market that is no longer willing to wait.