Cardano suffers a 60% drop in a year: founder charges more community engagement

Introduction: ADA loses pace as the altcoins market reconfigures

The Cardano ecosystem (ADA) is facing one of the most challenging periods in its history.In the last 12 months, the cryptocurrency has accumulated a devaluation ofNearly 60%According to data ofBTC and EchoWhile Bitcoin and Ethereum are showing timid recovery, and solutions like Solana and XRP are gaining traction, the ADA community is pressured to react. In this context, Charles Hoskinson, founder of Cardano, posted a strong message: “Make Cardano better.”

Hoskinson, known for his direct style, pointed out that the community needs to take on a more active role in the development of the project, especially in the face of criticism about slow adoption of updates and lack of visible innovation.

ADA in free fall: what explains the record depreciation?

The ADA chart for the last 12 months tells a story of frustration. By January 2023, the currency was worth about$0.40 to $0.40Today, it is close to a$0.15, according to data from CoinGecko. Experts point out several causes for this drop:

• The fierce competition:Projects like Solana (SOL) and XRP gained traction with fast transactions and low fees, while Cardano, although technically robust, took time to deliver real use cases.
• Delay in updates:Implementation of features such as more efficient smart contracts and scalability solutions (Hydra) has been gradual, disappointing expectations.
• Lack of institutional support:Unlike Ethereum, which already has consolidated use in DeFi and NFTs, Cardano still seeks success cases on a global scale.

For the Brazilian investor, this scenario is relevant.Many have bet on ADA as a “cheaper” alternative to Ethereum, but reality has shown that low price does not guarantee valuation.In addition, the volatility of the altcoins market in Brazil — where regulation and liquidity are critical factors — aggravates uncertainty.

Hoskinson lights the alert: community needs to act

In a recently published video, Charles Hoskinson did not spare criticism of the community. "If you want Cardano to be relevant, you need to build something," he said.Updated Chang, which promises to further decentralize the network and improve governance. But the implementation, scheduled for 2024, already faces reduced expectations after years of unfulfilled promises.

Cardano’s Brazilian ecosystem, although smaller than that of Ethereum or Solana, has potential.Added Pay(payment solutions with ADA) and partnerships with local institutions try to give traction. However, without a greater volume of transactions and actual adoption, the currency remains vulnerable to further falls.

One thing that attracts attention is the12% increase in Solana transaction volumeIn the last quarter, while ADA recorded a drop of 8% in the same period, according to theCoinTribuneThis reflects a trend: investors are migrating to projects with faster adoption and clear use cases.

Impact on the market: what to expect from now on?

For ADA holders in Brazil, the scenario is of caution. Brazilian crypto experts, such as the analystby Fernando Ulrich(investor and youtuber), point out that the currency may have a "floor" near the$0.10In the short term, if there is no concrete movement of the community or institutional adoption.

• Success in Chang update:If decentralized governance is successful, it can attract new developers.
• Cases of use in DeFi and NFTs:Projects asMinswap e CNFTs(NFTs in Cardano) need to win traction.
• Partnerships in Brazil:Approaching local universities and could boost adoption.

Investors looking for alternatives in the altcoins market should look at projects with:

• Provided technology:Solana and XRP, for example, have low rates and high scalability.
• The institutional adoption:Ethereum continues as a reference in smart contracts, but Solana has attracted the attention of companies like Visa.
• The Committed Community:Projects like Polkadot and Avalanche also bet on active governance, but with different trajectories.

In Brazil, theRegulatory Instruction 1.888 of the Federal RevenueIn a market still in consolidation, liquidity and security are key factors — and ADA, in this context, remains as a high-risk asset.

Conclusion: Cardano needs more than words to recover

The message from Charles Hoskinson is clear: without concrete action, Cardano may continue to lose relevance. The project has solid technical foundations (such as the Ouroboros consensus), but the lack of real adoption and fierce competition make the way difficult. For Brazilian investors, the lesson is obvious: altcoins like ADA require deep research and risk tolerance.

While the global cryptocurrency market is reconfiguring — with Bitcoin and Ethereum dominating 60% of total capitalization, according to the report.CoinTribune— Projects like Cardano need to prove that they are more than promises. In Brazil, where regulation is advancing and adoption is growing, the time to act is now. Whether to hold ADA or explore other alternatives, the moment requires caution and strategic vision.

One thing is certain: the Cardano ecosystem can't afford more years of empty promises. The community, either changes the level, or risks becoming just another case study in books of cryptocurrency history.