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The Cardano (ADA) project recently celebrated its fifth anniversary. However, skeptics believe that he does not have long to celebrate
The market capitalization of the Cardano blockchain is about $14.9 billion. At the same time, the growth rate since January of this year was an impressive 270%. However, Ethereum maximalist Evan Van Ness recently announced that the Cardano project is just a zombie chain powered by ADA bots.
It is curious that just at the beginning of September, the main ideologue of Cardano, Charles Hoskinson, criticized Ethereum Classic, also calling it a dead project without any purpose. Then Hoskinson said that this project is dead and exists solely to spite the haters.
Is Cardano turning into a zombie?
To confirm his opinion, Van Ness decided to compare the number of transactions per second on Cardano and the Uniswap platform. As a result, he concluded that Cardano is significantly behind Uniswap in this indicator. On the ADA network, there is less than one transaction per second.
Source: Evan Van Ness on Twitter
As shown by the 7-day moving average of the number of daily transactions on Uniswap (red) and Cardano (blue), the number of transactions on the ADA network began to fall after May 2021. Meanwhile, on Uniswap, the indicator gained momentum and outperformed its competitor in July 2022.
This statistic is all the more surprising when you consider that Uniswap has a market cap of only about $5 billion (at the time of writing) versus Cardano’s $14.9 billion. Moreover, Uniswap generates more than $1,000,000 in fees every day, while Cardano only generates $10,000 or less in fees (the second column in the graph shows the 7-day average of fees).
Source: Evan Van Ness on Twitter
ADA remains popular with retail investors
Recall that on the night of Friday, September 23, the long-awaited Vasil update successfully took place in the Cardano network, which was designed to increase network scaling and transaction processing speed, as well as reduce commissions.
However, the coin of the project did not react to this significant event. As the statistics show, ADA showed practically no significant jumps in price or user activity.
However, some consolation for ADA hodlers can be a stable daily active address count. It remained stable even during the bear market.
Source: Santiment
However, at the same time, it should be noted that the share of coins located on the addresses of whales is now kept at minimum levels. This indicates a lack of confidence in ADA on the part of major market players. Probably, without their support, the ADA rate will not be able to recover above the key round $1 mark, above which the price has not been traded since the beginning of this year.
You can read the latest Bitcoin technical analysis here.
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