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Crypto research firm shares extremely bearish outlook for Cardano (ADA)

By:
on Jan 16, 2024
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  • Cardano (ADA) could face the market trajectory that has IOTA, EOS and NEO struggling.
  • Crypto research firm K33 Research shared this outlook in a report published on Monday.
  • ADA price traded around $0.53 at the time of writing, down 82% since its all-time high in 2021.

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As cryptocurrencies eye fresh bounce following the declines seen in the past week, K33 Research is holding an extremely bearish outlook for Cardano (ADA)

According to their latest outlook, the platform says Cardano could “drift into irrelevance.” The research report points to the market trajectories of IOTA, NEO, and EOS as an example. 

In its “Why you should sell Cardano (ADA)” report, the research firm points to several factors as reasons why the cryptocurrency could slowly “bleed” into obscurity.

Cardano “not used for anything”

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According to K33 Research, the Cardano network does not have any meaningful activity and this could be the main reason ADA ends up becoming worthless down the road. A blockchain platform, specifically a smart contracts network such as Cardano needs its native token to have practical use, Anders Helseth, Head of Research at K33 noted.

This appears not to be the case for ADA, Helseth argued. According to him, although some counter-arguments might point to the 90,000 daily transactions, these are blockchain transactions and not “meaningful transactions.”

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“There’s nothing else going on in the Cardano Network than exchange transfers and a group of bagholders fabricating blockchain activity,” he noted.

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What does Cardano’s stablecoin situation say?

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Apart from blockchain data and trading exchanges, there’s no external proof of “real activity.” In addition to this there’s Cardano’s stablecoin situation. The major stablecoins by Tether and Circle – USDT and USDC – are not on Cardano.

Instead, there’s only Cardano-collateralized stablecoins, with these currently valued at 76 cents to the dollar. The research firm says this is “another word for nothing”, particularly for DeFi. Per the report, Cardano has a great history and story, but zero traction. Only a grand idea is being sold to new ADA holders, but the future is bleak.

“Ada has not rallied in line with other ‘stronger’ smart contract tokens when markets have improved, which is a strong indicator of a dying coin,” Helseth opined.

He suggests that ADA is facing a scenario where it becomes “worthless over time.” It’s a trajectory similar to that seen with other altcoins, including IOTA, NEO, and EOS. Many projects with this outlook swell amid tech upgrades or key partnership announcements, but quickly fade as nothing major comes of it.

Does this mean ADA could fall off the top 10 ranking and disappear into the backyard? 

According to CoinGecko data, Cardano’s price reached an all-time high of $3.09 in September 2021. But despite its 53% gains in the past year, ADA’s current value remains more than 82% of its all-time peak. 

The cryptocurrency was trading around $0.53 at the time of writing.

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