The biggest use case for third-generation cryptocurrencies is decentralized finance, on which Cardano has built its reputation and hype over the years.
Alas, the results weren’t particularly impressive.Especially in less than a year, the network has only noticed emission 93 items. Now, investors don’t yet know which one is about to kick off, despite another 1,048 projects under construction.
Cardano is taking baby steps
With the Vasil hard fork, DeFi promises to overhaul the network. For many, however, the same arrival has been an uphill journey, as Vasil has been delayed again after weeks of delays.
The Cardano development team has been reassuring everyone that it is over, but no final date has been given. The development team stated in their latest update,
“A new dedicated pre-production environment was created for the final phase of Vasil functional testing. This environment provides higher chain density and a better developer experience.”
Cardano’s experience with DeFi isn’t the best, and after the May and June crash, with just $94 million locked on-chain, Vasil needs to be a major event. Just this week, the network lost nearly $50 million as the TVL of decentralized exchange (DEX) Wingriders dropped by 68%.
On the investor side, it’s not much better.
Cardano holders, suffering from a lack of growth, hit a 12-month low this week as more investors continue to avoid participating in on-chain transactions.
As a result, total daily active users fell from 234,000 in January to 64,000 at press time.
Now, as long as the market value of the asset does not increase, one can expect this to continue. However, currently it is better than it was a month ago, with the ADA reading still below 1.0. Unfortunately, this is not enough to attract investors to the chain.
So unless there is some real improvement in terms of price or network development, Cardano will continue as it is now.