Cryptocurrency research firm K33 issued a stern warning about the future of Cardano (ADA) in a recent report.
The company argues that the Cardano network lacks meaningful activity, which will render the ADA token worthless over time.
K33 noted that for a smart contract network to have any value, its native token must be used significantly. However, they claim that the Cardano network lacks such use or a reliable way to achieve it.
Although Cardano supporters point out that there are an average of 90,000 transactions per day, K33 does not consider these to be meaningful transactions. They argue that the only activity on the Cardano network is exchange transfers and a group of owners fabricating blockchain activity.
K33 also criticizes the absence of stablecoins, which are typically the preferred currency of exchange for DeFi altcoin trading, on the Cardano network. They state that there is not a single USDT or USDC on the Cardano network, indicating that no meaningful DeFi transactions are taking place.
The report also expresses skepticism about the future growth of Cardano, claiming that it has not gained any traction despite its many years of history. K33 points out that too many projects that started with zero traction and made big promises about future technology updates or partnerships have failed.
Even though ADA currently has a market cap of $19 billion, K33 suggests that ADA will slowly disappear from the crypto world. They attribute ADA's current value to its widespread availability on exchanges and its appeal to newcomers due to its branding as a “peer-reviewed research-driven blockchain network.”
But K33 warns that these factors may not sustain the value of the ADA in the long term. They argue that when markets recover, ADA does not rise in line with other 'stronger' smart contract tokens, and they see this as a strong indicator of a dying coin.
*This is not investment advice.
