Cryptocurrency analyst Altcoin Buzz shed light on some concerns in the crypto world, particularly focusing on Cardano (ADA). Despite ADA’s impressive price increase since October 2023, reaching almost 74 cents from 24 cents, there are underlying issues worth noting.
Cardano has always been a topic of discussion, often criticized for its lack of self-promotion compared to other crypto projects. Additionally, its approach tends to be somewhat isolated. However, a new criticism has emerged, suggesting that Cardano hosts a significant number of “dead coins,” according to a report by Alpha Quest Research.
This report, which analyzed over 12,000 crypto projects, revealed that almost two-thirds of projects started during the 2020 and 2021 bull runs have failed. Among the top projects hosting dead coins are Cardano and Terra, indicating a serious issue within their ecosystems.
The criteria for determining a dead coin included low trading volume, inactive social media accounts, defunct websites, and delisting from CoinMarketCap. With 74% of Cardano ecosystem projects classified as dead, it’s a concerning statistic.
Moreover, the report highlighted that the average lifespan of a crypto project is around 2.21 years, with a significant percentage failing within the first six months or one year.
Despite these challenges, there are bright spots within the Cardano ecosystem, such as projects like Wanchain, which are thriving and actively contributing to the network’s growth. ADA’s price performance has also been noteworthy, experiencing a substantial increase over the past year.
However, it’s essential to consider the implications of hosting many dead coins within an ecosystem, as it can impact investor confidence and overall ecosystem health. While Cardano has seen significant growth and has promising projects within its ecosystem, the prevalence of dead coins raises valid concerns about its long-term viability and sustainability.
