• Cardano, one of the most popular blockchains, is highly controversial due to its ecosystem growth. Some crypto watchers believe it is overvalued while others argue it is a ghost chain.
• Data shows that Cardano’s DeFi ecosystem and NFT industry are thriving and the network has an active user base.
• Despite this activity, many believe that Cardano’s $10 billion valuation is too high and not justified by its performance or development progress.
Is Cardano a Ghost Chain?
Cardano is one of the most popular blockchains in the crypto space but there are concerns about its ecosystem growth which have caused some to label it as a ghost chain. However, data shows that Cardano’s DeFi ecosystem and NFT industry are both growing and the network has an active user base.
Data compiled by DeFi Llama shows that Cardano’s Total Value Locked (TVL) has jumped to an all-time high of over 750 million ADA coins. This growth has been driven by the rising number of DeFi protocols on Cardano, such as MuesliSwap, MinSwap, SundaeSwap and Indigo, which have contributed to its increasing TVL.
In addition to its DeFi activity, data from CryptoSlam shows that total sales of Cardano Non-Fungible Tokens (NFTs) in the past 24 hours totaled $277k, making it the eighth biggest player in terms of NFT sales after Ethereum, Polygon, Mythos etc.
The network also enjoys an active user base with figures showing that it averages over 30k daily users – much higher than what most ghost chains typically have. Taken together these metrics demonstrate that despite being surrounded by controversy Cardano cannot be defined as a ghost chain because its ecosystem is growing steadily.
However despite all this activity many still believe that Cardano’s current $10 billion valuation is too high when compared to other projects like American Airlines or Lazard who are valued at lower prices even though they generate more revenue than Cardano does currently. As such many argue that this current valuation of Cardano isn’t justified by either its performance or development progress yet which could lead to further drawdowns in future unless changes are made soon.