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Cardano (ADA) faces ‘zombie’ accusations amid declined user activity

By:
on Apr 28, 2024
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  • Forbes analysts criticized ADA, XRP, ETC as overvalued assets
  • Cardano witnesses a notable drop in wallet activity.
  • ADA price displayed weakness, down 29% in the past month.

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Forbes named multiple tokens, including Cardano (ADA), Ethereum Classic (ETC), and Ripple (XRP), as “zombie” projects.

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That refers to blockchains struggling without signs of life with notable user bases and real-world utility.

These assets display resilience and could even bring profits through significant ICOs and speculative trading but hardly attain their promises of practical and technical goals.

The analysts believe Cardano founder Charles Hoskinson’s popularity drives speculative attention in ADA.

Cardano’s fading wallet activity

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Santiment revealed a substantial plunge in ADA’s wallet activity, triggering worries about the reason behind the slump and possible impact on the token’s price direction.

The on-chain analytic platform compared top cryptos’ non-empty wallets. Cardano emerged as among the few blockchains with a decline in active users.

Bitcoin (BTC) showcased impressive growth in non-empty addresses despite jerky prices.

Dogecoin wallet activity remained relatively flat after massive surges early in 2024.

Moreover, Cardano displayed weakness in the DeFi space, with immense total value locked (TVL) dips. The metric has maintained downtrends since March 16 to press time values of $297.21M.

ADA TVL chart on DeFiLlama

ADA price action

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Cardano changed hands at $0.4682 after gaining 2.21% in the past 24 hours.

Nevertheless, ADA saw increased bearishness over the past month, losing nearly 29% of its value within 30 days.

ADA Monthly Chart on Coinmarketcap

The underperformance saw Toncoin flipping Cardano in crypto rankings by value. ADA stood at the 10th spot at press time, with $16,709,949,737 in market capitalization.

Meanwhile, the fading user activity could indicate a diminishing interest in ADA, painting a bearish picture for the altcoin.

However, the overall crypto market displays uncertainty with unclear direction, and waned user activity is usual in such conditions.

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