Is Cardano a ‘wannabe Ethereum?’ What Hayes, Hoskinson have to say

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  • Hayes raised ques­tions on the network’s poten­tial to build suc­cess­ful dApps.
  • Cardano’s mar­ket cap to TVL ratio was one of the high­est in the space.

Bit­coin [BTC] pro­po­nent and co-founder of cryp­tocur­ren­cy exchange Bit­MeX Arthur Hayes ruf­fled few feath­ers by using unsa­vory terms for pop­u­lar blockchain Car­dano [ADA].

Hayes attacks Cardano again

In a con­tro­ver­sial X post that has gone viral, the Amer­i­can entre­pre­neur raised ques­tions on the poten­tial of the net­work to pro­duce effec­tive native­ly-built decen­tral­ized apps (dApps).

“What dApp on this list orig­i­nal­ly launched on Car­dano, or has a Car­dano offer­ing that is heav­i­ly used?,” Hayes asked after attach­ing a snip­pet of the most suc­cess­ful Web3 projects in the last year.

In what looked like a tongue-in-cheek remark, Bit­coin bil­lion­aire even asked founder Charles Hoskin­son to edu­cate him about Car­dano network’s accomplishments.

Charles Hoskinson’s reply

The bait was tak­en as Hoskin­son respond­ed. He asked Hayes the rea­son behind him detest­ing Car­dano. Hoskin­son even said that he admired Hayes as a person.

In response, Hayes indi­cat­ed that his dis­dain for Car­dano was not per­son­al, and that he also admired Hoskin­son. But Hayes con­tin­ued to use harsh words for Cardano.

Well, it wasn’t the first instance of Arthur Hayes throw­ing a shade at Car­dano. Dur­ing a recent inter­view with Coin Bureau, he labeled Car­dano as a “wannabe Ethereum” and its rel­e­vance in the blockchain space.

Did Hayes have a point?

Over the years, Cardano’s DeFi growth has lagged well behind its mar­ket cap increase, as per AMBCrypto’s analy­sis of DeFiLla­ma data.

As of this writ­ing, the total val­ue locked (TVL) on the chain was just $460 mil­lion, much less than chains on the same pedestal in terms of pop­u­lar­i­ty. This despite a 147% jump in the last four months.

Cardano DeFi TVL

Source: DeFiLla­ma

Read ADA’s Price Pre­dic­tion 2024–25

Cardano’s mar­ket cap to TVL ratio was one of the high­est in the space, sug­gest­ing a high­ly over­val­ued asset. Put sim­ply, the native asset ADA didn’t jus­ti­fy its high mar­ket cap.

Typ­i­cal­ly, such projects are less appeal­ing to investors since they offer less scope for growth. As of this writ­ing, ADA was exchang­ing hands at $0.59, drop­ping 6.68% in the last 24 hours, accord­ing to Coin­Mar­ket­Cap.

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