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A well-known on-chain and market research company in the cryptocurrency industry, Arcane Research made a bold prediction around a year ago about the Cardano ecosystem and its place at cryptocurrency's top by market capitalization. It did not age well.
According to the year-old report, XRP and Cardano should have lost their places in the top 10 of cryptocurrencies by market capitalization. The analysts' main argument was the share of the market and usage that Cardano and XRP used to have.
With networks like Binance Smart Chain growing exponentially and pushing older coins back, Arcane was betting on the growth of blockchain with high usability and revenue, which Cardano and XRP lacked.
The situation changed when Cardano introduced smart contracts technology and the first decentralized applications built on the network started to attract users and investors. At a certain point, the network celebrated more than $300 million locked in a smart contract of decentralized applications.
As for now, Cardano sees a mild outflow of funds following the overall crisis in the DeFi and NFT fields, but it still remains in the top six of cryptocurrencies by market capitalization, according to CoinMarketCap, including various stablecoins. Among nonstable cryptocurrencies, ADA remains the fourth biggest digital asset in the world.
Besides improving their place on the market, Cardano is getting ready for a variety of updates and announcements in the summer, including the Vasil Hard Fork that will bring many CIPs to life and various solutions like the Djed algorithmic stablecoin.
At press time, ADA trades at $0.6 and has been rallying for the last week. The market capitalization of the coin is at $21 billion.
Godfrey Benjamin
Tomiwabold Olajide
