February 6, 2023

The biggest use case for third-generation cryptocurrencies is decentralized finance, on which Cardano has built its reputation and hype for years.

Unfortunately, the result was not particularly impressive. Especially since in just under a year, only Grid noticed release From 93 projects. Now, despite another 1,048 projects being built, investors still know which ones are on their way to take off.

Cardano takes small steps

With Vasil’s hard fork, DeFi is expected to see an overhaul on the network. However, the arrival of the car itself was an arduous journey for many, as after weeks of delay Vasyl was again late.

The Cardano development team has assured everyone that it is close, but no deadline has been set. The development team stated in their latest update,

“A new custom pre-production environment has been developed for the final stages of Vasil functionality testing. This environment provides improved thread density and a better developer experience.”

Cardano’s experience with DeFi hasn’t been the best, and with only $94 million unlocked on the chain after the May-June crash, Vasil should be a milestone. Just this week, nearly $50 million was wiped off the network as Decentralized Exchange (DEX) Wingriders’ TVL plunged 68%.

Total value of Cardano locked | source: DeFi Llama – AMBCrypto

On the investor front, the situation is not better either.

Under-growth cardano holders reached their lowest levels in 12 months this week as more and more investors continue to refrain from participating in the series.

Thus, the total active users on a daily basis decreased from 234K in January to 64K at press time.

Cardano active users | source: Currency Measurement – AMBCrypto

Now, one can expect this to continue as long as the market value of the asset does not improve. Right now, however, it’s better than it was a month ago, with ADA numbers still below 1.0. This, unfortunately, is not a good enough value to attract investors to the chain.

Cardano market value | source: Currency Measurement – AMBCrypto

Thus, unless there is some actual improvement both in terms of price and in terms of network development, Cardano will remain.

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