Cardano Crashes Out of Top 10: What went wrong?

Its finally happened on 20th August 2024 – Cardano ( $ADA ) is no longer a top 10 crypto project by Market Cap. A project which was well on its way to cement its #3 position back in the 2021 bull run has now a market cap of $12.6B while the project which surpassed it, Justin Sun’s Tron has a market cap of $14.3B.

How did this even come about? How did Cardano crash out of the top 10 and why on earth has its price action been so bad throughout the bear and bulls runs following 2021?

Let us see some facts and some opinions in this article on why for Cardano, it has come to this.

Back in 2021….

Cardano ($ADA) saw a massive price surge during the 2021 crypto bull run, and there were several key reasons behind its success. Let’s break down why Cardano became one of the standout performers during that time.

Just look at he price chart from 2020-2021. $ADA saw a rise from $0.09 to $2.85 in just 9 months. That is a 3000% pump in just 9 months.

Solid Tech and Vision

Cardano’s tech isn’t just hype—it’s built on solid foundations. Charles Hoskinson, one of the brains behind Ethereum, led Cardano’s development with a clear vision. Unlike many other cryptocurrencies that rushed to market, Cardano took a methodical approach. They focused on peer-reviewed research, ensuring that their blockchain was not only secure but also scalable and sustainable. This careful planning and emphasis on getting things right attracted a lot of serious attention and investment.

Game-Changing Upgrades

One of the biggest reasons for Cardano’s rise was the Alonzo upgrade in September 2021. This upgrade brought smart contracts to the Cardano network, opening the door for decentralized apps (dApps) and decentralized finance (DeFi) projects. Before this, Cardano was seen as a promising platform, but it was the smart contract functionality that really put it on the map. Investors were excited about what this could mean for the future, leading to a surge in demand for ADA tokens.

Expanding Partnerships and Real-World Use

Cardano wasn’t just talking the talk—they were walking the walk with real-world partnerships. They collaborated with governments, educational institutions, and private companies. For example, their partnership with the Ethiopian government to create blockchain-based educational systems was a huge deal. These kinds of partnerships showed that Cardano wasn’t just another crypto project; it had real-world applications. This credibility attracted more developers and users, further boosting ADA’s value.

Strong Community Support

Cardano’s community is one of the most passionate in the crypto space. During the 2021 bull run, this community support played a crucial role in maintaining momentum. Social media buzz and active discussions around Cardano helped draw in more interest. Plus, the community was heavily involved in staking, with a large percentage of ADA being staked. This reduced the number of ADA available in the market, which in turn helped drive up the price.

Riding the Crypto Wave

Finally, Cardano benefited from the overall bullish sentiment in the crypto market in 2021. With many cryptocurrencies experiencing significant price increases, investors were on the lookout for projects with strong potential. Cardano, with its solid foundations, new upgrades, and growing ecosystem, fit the bill perfectly. As a result, it enjoyed a significant price surge alongside the broader market.

I think the difference has come down to this. The hype with Charles Hoskinson and a good tech (per 2021 standards) gave Cardano a very good name and lead in the last bull run but those things were not sustained. The price did not even show any fight in 2024 and that has eventually led to cardano crashing out of the top 10.

Progress in the so called “bear run”

Between 2021 and the end of 2023, Cardano’s progress was slower than expected. Despite its strong start in 2021, the momentum didn’t fully carry through. The Alonzo upgrade brought smart contracts, but the ecosystem didn’t expand as rapidly as anticipated. Many expected an explosion of decentralized apps (dApps) and projects on the platform, but adoption remained relatively low.

The development of Cardano’s ecosystem faced delays, and key projects took longer to launch. Hydra, a scaling solution, was expected to significantly increase transaction speeds. However, its development and implementation were slower than many had hoped. This delay contributed to frustration within the community, as competitors continued to advance more rapidly.

Cardano did see some progress with partnerships and real-world applications, but the impact was less dramatic than predicted. The platform’s potential remained high, but the actual results fell short of expectations. Investors and developers began to question whether Cardano could keep pace with faster-moving blockchains like Ethereum and Solana.

In summary, while Cardano made some strides between 2021 and 2023, the progress was not as significant as many had hoped. The platform continued to show promise, but it struggled to meet the high expectations set during its earlier years.

And finally – Cardano out of the top 10

In a great article on Cointribune, the author S. Evans wrote –

I think this perfectly sums up the fate of the two projects. Hoskinson and team have been too hung up on perfection IMO and people have come, built and raked in the profits meanwhile. What was supposedly cutting edge in 2021 is mainstream now and eventually the faster product is winning over the more intricate one.

Will this continue? I don’t know. Do I personally expect it to continue? I think yes, crypto is too quick an industry to be wasting time in and unfo