How bad can it get for Cardano? That’s what many investors will be asking themselves. Especially because of concerns about the scalability of smart contracts, ADA currently has a share price of less than $3. Despite ADA being one of the most talked about blockchains in the community this year, concerns did arise.
Cardano fell because of major smart contract concerns
Cardano was among the most discussed blockchains this year. It also had a particularly high level of awareness. After hitting an all-time high on September 2, when ADA had a price of $3.09, it dropped significantly to below $3. In the process, a jolt went through the Cardano community as the debate over Bitcoin’s energy consumption became more concerning and investors expected energy sustainability.
Cardano has been practically the talk of the town in recent months. Especially since it also recently introduced the very long-awaited smart contract functionality to its test network. However, the proof of stake blockchain that is supposed to bring ADA on par with Ethereum and Solana is yet to come. Now, however, it turns out that there might be a bit of an obstacle. That’s because it has been revealed that Cardano’s smart contract is particularly underperforming.
Investors are worried and criticize the latest development
With the ADA community now concerned about the Smart Contract feature, Cardano fell below the $3 mark. Currently, ADA has a price of just $2.58. At the same time, there are numerous comments from users criticizing the Cardano network for the recent development. Among other things, they say that the DeFi projects on the Cardano Testnet network cannot perform DeFi transactions. This would not even be possible due to network constraints. Because as it stands, only one transaction can be processed per block. At the same time, some users have already complained about this problem, especially since this reportedly only occurred during the update. For example, one user writes:
So ADA smart contracts failed. This is what happens when you rush something under pressure. Imo, they shouldn’t have waited 4 years to release it. Should have taken 8. Promising something in crypto is better than delivering bc it keeps hopes high.
Anotherhe user on Twitter noted that any solution to the problem shifts the network towards centralization.
Just FYI, the market is pulling back b/c ADA is releasing news that Cardano smart contracts don’t really seem to work. can only execute 1 txn per block per smart contract due to fundamental architecture (UTXO). any fix requires centralization. ADA is the #3 market cap coin.
As a result of this underperformance, Cardano’s price has plummeted significantly. In the process, it has a daily loss of over 8% and was at $2.38 during the day.
Charles Hoskinson responded, but investors are unhappy
Of course, Cardano founder Charles Hoskins has also spoken out and responded to the numerous comments from users. However, market participants are unhappy as they disagree with his response. They also said that his response was vague and unhelpful. Now, of course, it remains to be seen what happens next. If investors remain miffed, there could be a myriad of selling. If sentiment is good, ADA could find plenty of key investors.
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