October 4, 2022

The biggest third-generation cryptocurrency use case is Decentralized Finance, which Cardano has built its reputation and hype on for years.

Unfortunately, the result was not particularly impressive. Especially since in just under a year, the network has only scored the launch from 93 projects. Now, even though another 1048 projects are under construction, investors don’t yet know which one is on its way to launch.

Cardano is taking baby steps

With the Vasil hard fork, DeFi is expected to see a network overhaul. However, the arrival of the same was a painful journey for many as after weeks of delay, Vasil was delayed once again.

Cardano’s development team is reassuring everyone that it’s close, but no final date has been given. In the latest update, the developer team stated:

“A new dedicated pre-production environment has been created for the final stages of Vasil’s functionality testing. This environment offers improved chain density and a better developer experience.”

Cardano’s experience with DeFi hasn’t been the best, and with only $94 million locked into the chain after the May and June crashes, Vasil should be a major event. Just this week, nearly $50 million was wiped from the network as Decentralized Exchange (DEX) Wingriders’ TVL dropped by 68%.

Cardano Total price locked | Source: DeFi Llama – AMBCrypto

On the investor front, the situation is no better.

Cardano holders suffering from a lack of growth hit a 12-month low this week as more investors continue to shy away from holdings in the chain.

As a result, total daily active users have dropped from 234k in January to a paltry 64k at press time.

Active Cardano users | Source: Coinmetrics – AMBCrypto

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

The market value of Cardano | Source: Coinmetrics – AMBCrypto

So, unless there is some real improvement either on the price front or in terms of network development, Cardano will continue to be as it is now.

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