Cardano (ADA), a prominent blockchain platform, has been dealt a significant blow by new research highlighting its ecosystem’s high concentration of “dead coins” – projects that have essentially failed. While this news raises concerns about Cardano’s overall health, a recent outage on a rival platform has presented ADA with a potential silver lining.
Cardano: A Graveyard of Failed Projects?
According to a report by AlphaQuest Research, a staggering 74% of Cardano-based projects have ceased to exist. These “dead coins” are identified by factors like low trading volume, inactive social media accounts, and defunct websites. This high failure rate places Cardano at the top of the list when it comes to ecosystems with a significant number of dead coins.
This research also points to the broader challenges faced by the cryptocurrency industry, particularly for projects launched during the 2020-2021 bull market. AlphaQuest notes that 21.77% of crypto projects don’t even last a year, while only 22.4% manage to survive beyond four years.
Cardano vs. Avalanche: Seeking Stability in Times of Outage
While Cardano navigates this negative press, the platform has unexpectedly benefitted from a recent outage on its competitor, Avalanche (AVAX). Avalanche suffered a nearly five-hour outage on Friday, causing its native token AVAX to drop by over 7% in the past week.
This incident has led some investors to seek refuge in Cardano, highlighting its perceived stability compared to its struggling competitor. Dan Gambardello, Founder of Crypto Capital Venture, believes this trend could continue, eventually attracting institutional investment towards ADA due to its “unique peer-reviewed research approach” and focus on building a resilient foundation.
Also Read: Cardano to $1: Can it Moon Like AI Predicts? AI vs. Analyst Battle Heats Up (Current Price: $0.56)
A Glimpse of Hope for Cardano?
While the high rate of dead coins within the Cardano ecosystem paints a concerning picture, the recent events surrounding Avalanche’s outage have provided ADA with a temporary reprieve. Cardano remains a top 10 cryptocurrency by market capitalization, and its focus on consistent uptime could attract investors seeking stability in a volatile market. However, whether Cardano can overcome the long-term implications of its high dead coin rate remains to be seen.
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