Recently, Cardano and its ADA token have been facing challenges with growth. To improve its performance, focusing on social hype and current trends might be crucial. Cardano has been falling behind major competitors like Solana and Ethereum, particularly in areas such as transactions and NFTs.
One possible reason for Cardano’s underperformance is its failure to capitalize on market trends, such as the recent popularity of memecoins. While other platforms benefited from this trend, Cardano had only a few memecoins, and they didn’t generate enough hype to draw users into its ecosystem.
Reasons Behind Cardano’s Underperformance and the Hype Issue
Crypto analyst Max Maher recently identified three key reasons for the underperformance of Cardano and its ADA token. Firstly, he pointed out that Cardano lacks a strong narrative compared to competitors like Solana, which has leveraged memecoins, and Ethereum, which has benefited from ETFs. Secondly, he noted that Cardano’s network security, a core value, is not well understood by many.
The third reason Maher highlighted is that community sentiment may have been working against Cardano. The idea that “the network has no hype” has gained traction recently, and even the Cardano community has acknowledged this issue and is trying to address it.
Cardano’s social metrics reflect this lack of hype. For instance, sentiment in Cardano’s Telegram channel has been low over the past year, and there has been a noticeable slowdown in the number of members since the 2021 bull run.
Source: IntoTheBlock
Given that Telegram has become a major platform for the crypto community this year, this trend confirms the network’s low social performance.
Cardano’s Search Trends and Potential for Change
Examining Cardano’s search trends reveals a significant correlation with ADA’s price action. The search trend indicator has been declining since March, which is not surprising given the current market conditions.
Search Trend_Source: IntoTheBlock
A shift in social sentiment could be key to turning things around for Cardano. For example, some projects within its ecosystem, like Snek, are working to boost their social presence. However, this may not be enough on its own.
Cardano is also focusing on gaining exposure to key narratives relevant to the current bull run. Its projects in the DePin and AI sectors have the potential to attract more investor interest.
In the meantime, ADA is trading at a notable discount, which could become appealing once Cardano’s new narratives start gaining traction.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
