DeFi
Cardano DeFi TVL falls below Gnosis, Near, Cronos, Aptos and Sui
CardanoThe price has joined other cryptocurrencies in a strong sell-off as concerns over the new crypto winter intensify. It has fallen more than 8% in the last 7 days, bringing its total market cap to over $13 billion, making it the 10th largest crypto in the industry.
Cardano has become one of the largest shadow chains in the crypto industry. A ghost chain is defined as a blockchain that is devoid of any utility. In the case of Cardano, no major dApps have exited the ecosystem while the number of developers has declined.
In contrast, Ethereum has well-known applications like AAVE, Compound and Lido DAO. Likewise, Solana hosts popular meme coins like Dogwifhat and Bonk and DeFi protocols like Orca, Jupiter, and Raydium.
Cardano DeFiTVLplunged to $289 million, making it the 28th largest platform in the blockchain industry. All network players like Minswap, Indigo, Liquid, and SingularityNET have plunged double digits over the past few weeks.
More importantly, Cardano has a limited amount of stablecoins in its ecosystem. These stablecoins have a market cap of less than $20 million, meaning most people are not using their ecosystem. In contrast, Tron has over $50 billion in stablecoins, while Ethereum has over $80 billion.
Cardano has now become a smaller platform than many blockchains that have a smaller market capitalization. For example, Gnosis, whose GNO token has a market cap of $814 million, has a DeFi TVL of around $328 million.
Cardano is also smaller than Mantle, which has a TVL of over $383 million and a market cap of over $2.5 billion. It is also smaller than other smaller networks like Aptos, Near Protocol, and Sui.
At the same time, Cardano has no market share in other sectors of the blockchain industry. For example, CryptoSlam data shows that the network processed NFTs worth just $48,000 in the last 24 hours and $1.8 million. in the last 30 days. Worse yet, most of these sales have been laundry product sales.
All of this provides further evidence that Cardano is the largest shadow chain in the crypto industry and it was difficult to justify its valuation. On the positive side, its valuation fell from an all-time high of over $90 billion during the latest crypto bull run.