- Cardano and ADA have been missing out in terms of growth of late
- Social hype and playing into narratives may prove to be a winning formula though
It is no secret that Cardano has been lagging behind its large-cap counterparts. This is the case in more ways than one, however, the most prominent ones include transactions and NFTs.
Perhaps, the reason why Cardano has been underperforming is because it did not manage to capitalize on market trends like Solana and Ethereum did.
For example, memecoins have been at the forefront of many bullish phases this year. However, Cardano had very few memecoins that could have capitalized on that trend. Or maybe, the problem was that these few memecoins did not have enough hype to bring users into Cardano’s ecosystem.
What’s the hold-up?
Crypto analyst Max Maher recently pointed out three major reasons why Cardano and ADA have been underperforming. He noted that Cardano did not have a proper narrative to ride on, like Solana’s memecoin narrative or Ethereum with its ETFs. The second point he made pertained to network security as its core values haven’t really been understood by many.
The third point suggested that community sentiment may have been acting against Cardano.
‘The network has no hype’ – This narrative has gained much popularity over the last few months. In fact, even the Cardano community has recognized this and is working to remedy the situation.
Cardano’s social metrics do reflect the lack of hype. For example, Cardano’s Telegram sentiment indicated low excitement over the last 12 months. Meanwhile, its Telegram channel experienced a slowdown in the number of members since 2021’s bull run.
Source: IntoTheBlock
Telegram has become one of the leading social platforms for the crypto-community this year, therefore confirming the low social performance.
While at it, we decided to look at Cardano’s search trends. We found that ADA’s price action had significant correlation to this metric. Unsurprisingly, the search trend indicator has been declining since March.
Source: IntoTheBlock
A change of guard with respect to social sentiment may finally turn things around for Cardano. For instance – Some of the projects existing in its ecosystem such as Snek have been aiming at a more pronounced social presence. Alas, perhaps it will take more than that.
Cardano has been growing its exposure to key narratives for the current bull run. Its projects in the DePin and AI segments have potential to attract more attention from investors.
Meanwhile, ADA has been trading at a noteworthy discount. This may prove attractive once Cardano’s narratives finally kick off.
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