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In a recent Twitter thread, the Cardano community rallied to defend its favorite cryptocurrency from critics who questioned the project's high valuation. The discussion began when user Algod posted a tweet stating that, after being in the crypto space for over six years, they still could not understand why Cardano was valued so highly. They argued that reaching a $10 billion market cap without a tangible product was absurd and considered it the "greatest bubble of all time."
However, numerous Cardano supporters quickly responded to the tweet, providing various data points to justify the project's value. First, they highlighted that Cardano has the largest number of unique wallets participating in staking. Second, they pointed out the project's respectable total value locked (TVL) of $420 million. Lastly, the community noted that 30% of all stakers on the network are retail investors, demonstrating a broad base of support and decentralization.
I’m in crypto for 6+ years and still have no clue why Cardano is valued this high
Absurd something can go to 10bn+ valuation without a product, the greatest bubble of all time— Algod (@AlgodTrading) April 6, 2023Bitcoin (BTC) Approaches $98,000 as Altcoins Lag BehindXRP 4 Days of Sleep: What's Next? Dogecoin (DOGE) Hints at Double Top Pattern Formation, Pepe (PEPE) Loses 21% in 6 Days, But There's Still ChanceBinance's CZ Warns About MacBook VulnerabilitiesMicroStrategy Raises Recent Convertible Notes Offer to $2.6 Billion to Buy More Bitcoin
Despite these positive data points, skeptics countered with contrasting information suggesting that the overall number of stakers on the network is rapidly decreasing. They also argued that the price performance of ADA has been stagnant for years, especially when compared to other cryptocurrencies like Ethereum or Solana.
In response to the conflicting data, the original poster, Algod, remained unimpressed with Cardano's achievements, reiterating their view that a $10 billion+ market cap was unjustified given the project's limited accomplishments in six to seven years.
Despite these criticisms, the Cardano community remains steadfast in its support for the project. They believe in its long-term potential and are confident in its ability to deliver on its promises. Cardano's development team is known for its meticulous approach and focus on peer-reviewed research, which has attracted a devoted following.
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team