•Cardano’s Total Value Locked (TVL) has dropped below Base, leading to criticism for the cryptocurrency.
•Evan Van Ness, a ConsenSys member and Ethereum advocate, labelled Cardano as a “zombie chain” due to its low TVL.
•The disparity in the TVLs highlights how the Base has won the hearts of market participants while Cardano hasn’t been attractive to investors.
Cardano Criticized for Loss Against Base
The Total Value Locked (TVL) of Cardano [ADA] has recently dropped below Base, a Layer Two (L2) scaling solution built by Coinbase. This elicited criticism from Evan Van Ness, a ConsenSys member and Ethereum [ETH] advocate who labeled Cardano as a “zombie chain” due to its low TVL.
Disparity in TVLs Indicates Unattractiveness of Cardano
The disparity in the TVLs highlights how the Base has won the hearts of market participants while Cardano hasn’t been attractive to investors. The metric measures unique deposits coming into a protocol; when it increases, it signifies an increase in trust and when it falls it means that market participants are avoiding making deposits into the protocol.
Decrease in ADA Active Addresses
As a result of this development, ADA active addresses have decreased significantly while development activity spiked. Interestingly, this isn’t the first time Van Ness has criticized Cardano; eleven months ago he pointed out its lack of transactions stating that there were barely more than 0.5 transactions per second then.
Base Wins Market Participants‘ Hearts
At press time, Cardano’s TVL was 161.72 million- a 9.83% decrease in the last 30 days whereas Base’s TVL was $185.9 million as it gained 10.18% in the last seven days indicating that market participants prefer Base over Cardano currently despite its recent launch on August 24th 2023.
Overall, this situation reflects how investors are not attracted to Cardano right now due to its low performance while other projects like Base have gained considerable attention with their high level of development activity and increasing trust from users with their burgeoning Total Value Locked score which is more than double that of Cardado’s at press time ($185M vs $161M).