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In a recent tweet, on-chain analytics firm Messari wrote, "Among the growing ecosystems, Cardano is priced more aggressively." The upcoming Vasil hard fork is slated to bring significant improvements to Cardano, specifically higher throughput and smart contract enhancements.
Among the growing ecosystems, @Cardano is priced more aggressively.
— Messari (@MessariCrypto) August 8, 2022
The upcoming Vasil hard fork is slated to bring significant improvements to Cardano, specifically higher throughput and smart contract enhancements. @Cardano @cardano_whale pic.twitter.com/P68S8UwwQq
It states in a report titled "Non-EVM chains in the bear market" that "Cardano was priced aggressively compared to its adoption metrics."
According to a chart provided by Messari, Cardano was demonstrating a transaction multiple and TVL multiple of 240 and 127, respectively, which was far higher than other blockchains such as Solana, Tezos, Algorand and NEO.
Transaction multiples are a type of financial metric used to value an asset. Cardano having greater transaction multiples and TVL multiples might mean, in a way, that Cardano was "overvalued" in Messari's context.
Convinced that applying these sorts of traditional multiples - especially when based on inaccurate or flawed metrics - will mean that you continue to not get what drives value in crypto.
— ADA whale (@cardano_whale) August 9, 2022
Cardano's community-focused Twitter account, ADA Whale, is of a different opinion, as he believes the metrics used by Messari were "flawed." He stated, when referring to the chart provided by Messari, "Convinced that applying these sorts of traditional multiples — especially when based on inaccurate or flawed metrics — will mean that you continue to not get what drives value in crypto."
I look at crypto valuation in two stages. In the early years (now-2025?) it’ll mostly be about network growth, see charts
— ADA whale (@cardano_whale) June 6, 2022
Beyond that, valuation likely matures to other frameworks and I hinted at one in the below tweet. Imo blindly focusing on TVL etc metrics missed the point https://t.co/b9m1mLmzKI
Referencing a chart, he tagged "Market cap per protocol x subreddit size." He claims that Cardano has a fair value, saying "ADA has fallen back to a perfectly neutral valuation. Some others have some ways to go or need strong adoption to justify valuations. ALGO, EGLD undervalued?"
He further added:
I look at crypto valuation in two stages. In the early years (now-2025?) it’ll mostly be about network growth. Beyond that, valuation likely matures to other frameworks. Imo blindly focusing on TVL etc metrics missed the point."
Cardano large addresses continue to accumulate
Meanwhile, Cardano large addresses continue to accumulate ahead of the Vasil hard fork.
🐳🦈 #Cardano shark & whale addresses have accumulated a combined ~$138M in $ADA in 8 days after the mid-June dump around the local price top. This is only a mild accumulation for now, but could get interesting if this trend continues throughout August. https://t.co/7ix8VPSkZG pic.twitter.com/uPfuLfbbkl
— Santiment (@santimentfeed) August 5, 2022
According to on-chain analytics firm Santiment, "Cardano shark & whale addresses have accumulated a combined ~$138M in $ADA in 8 days after the mid-June dump around the local price top. This is only a mild accumulation for now, but could get interesting if this trend continues throughout August."
At the time of publication, ADA was changing hands at $0.534, down 1.04% in the last 24 hours.
Alex Dovbnya
Denys Serhiichuk
