Wednesday, October 5

Fernando Ulrich chama Cardano de “stablecoin”

Fernando Ulrich, Head of Education at Liberta Investimentos, carried out a “social experiment” on his Twitter when he called Cardano (ADA) stablecoin. Today it is the 6th largest cryptocurrency on the market.

Known for its serious analysis, the community was quick to distrust the tweet that contains a joking edge to the ADA’s price tag. Gathering various comments about the project, loved by some and hated by others.

Ulrich is also known for being one of the first to support the cryptocurrency community in Brazil and for being the author of the book “Bitcoin: The currency in the digital age“, first published in 2014, practically at the beginning of the history of the coin created in 2009.

Was Cardano a great promise on the market?

For much of this year, Cardano (ADA) occupied the 3rd position by market capitalization, reaching the mark of 95 billion dollars when it was worth US$ 3.00 in February 2021. Its historic high remains at US$ 3 .09 per currency, achieved in September of that year.

Despite this, the price of cryptocurrency did not take off after the integration of smart contracts into its blockchain. On the contrary, its price has been falling since then and is currently trading at around US$ 1.45.

This makes it clear that in addition to not being a stablecoin — a currency with a stable price — it is also proving to be a big loser while other projects like Solana (SOL) and Avalanche (AVAX) are favored by the community.

Cardano’s main purpose is to compete with Ethereum, currently the largest project linked to the sector of smart contracts, DeFi, NFTs, among others, but for now it remains a promise.

strong competition

Known as smart coins because of their contracts, this cryptocurrency division is undoubtedly the most disputed one today. Much of this is due to Ethereum’s high fees, forcing users to look for workarounds.

With that, Binance Smart Chain, Solana, Cardano, Avalanche and even Ethereum itself, which is slowly migrating to its 2.0 version, are with a lot of speculation.

One of the big reasons is the high probability that only one of them dominates the sector, bringing together several projects such as games, NFTs, DAOs, WEB 3.0 and other use cases, so that a single currency can suck users and market value from the others. stand out.

With Cardano’s price dropping, it’s possible that some investors will risk investing in it while it’s cheap. The big risk is its lack of future adoption, both by projects and users, as it already happens today.