Recent research conducted by AlphaQuest Research establishes that Cardano (ADA) is one of the leading ecosystems with dead or failed coins in the past couple of years.
Cardano: Dead Coins King
According to a recent report from AlphaQuest, Cardano is a top network in terms of dead coins in 2024. The study found that 74% of Cardano-based projects had ceased to exist.
To classify projects as dead coins, the researchers utilized criteria such as low trading volume and liquidity, dormant or deleted X accounts, and websites that were no longer active. As such, blockchains with over 50% failed projects are dubbed as dead. Besides Cardano, Terra also experienced a similar 74% rate of project failures.
AlphaQuest noted that the majority of cryptocurrencies that debuted during the 2020-2021 bull market had since become defunct. This suggested that 2021 was quite a challenging year for new cryptocurrency projects.
Apart from Cardano and Terra, AlphaQuest also highlighted multiple other blockchain ecosystems having a significant amount of dead coins, including Harmony ONE, NEAR Protocol, Zilliqa, Celo, and Moonrive.
“A considerable number of crypto projects have a brief existence, with 21.77% lasting less than a year and 11.65% lasting less than six months. Only 22.40% of crypto projects successfully survive more than 4 years,” AlphaQuest postulated.
Avalanche Outage Benefits Cardano
Nonetheless, Dan Gambardello, Founder of Crypto Capital Venture, sang the praises of Cardano as rival blockchain Avalanche suffered a nearly five-hour outage. Avalanche halted block production at around 11 am (UTC) on Friday.
Gambardello emphasized his belief that institutions sooner or later will start investing in ADA because it has “a unique peer-reviewed research approach that has ensured a resilient and reliable foundation.”
Avalanche’s native token AVAX has dipped more than 7% over the past week, while Cardano’s ADA is up by 1.5% over the same timeframe. At publication time, AVAX changed hands at $36.72, some 74.7% lower than its $144.96 November 2021 high.
Pointing to Avalanche’s downtime, Gambardello reminded his X followers that “Cardano has not only proven itself as a consistent top 10 but has proven itself as steady.”
Adopting a more cautious stance, traders appear to be moving their funds from the Avalanche ecosystem into Cardano, seeking safety amid volatility after the major outage. According to Dan, Cardano is on the “path to being the only chain focused on a true decentralized governing system while maintaining consistent uptime”.
Notably, low-latency blockchain Solana also endured a five-hour outage earlier this month as it experienced heavy congestion.
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