- Base’s TVL flipped Cardano, sparking another round of criticism of the latter.
- Active ADA addresses declined as development activity peaked.
Cardano [ADA]often praised for its approach to smart contracts, has recently drawn criticism following the apparent drop in its Total Value Locked (TVL) under basea Layer Two (L2) scaling solution built by Coinbase.
Read Cardanos [ADA] Price Prediction 2023-2024
Not impressed with the chain
One person who has heavily criticized Cardano is ConsenSys member Evan Van Ness Ethereum [ETH] proponent. According to Van Ness, Cardano was now a “zombie chain” because it was two places below Base’s TVL.
It’s only been live for a few weeks, but… @BuildOnBase has already turned Cardano into TVL
(even new and immature) L2🚀
zombie chains 📉 pic.twitter.com/LOe0oGxRek— Evan Van Ness 🧉💸 (@evan_van_ness) August 24, 2023
Interestingly, this isn’t the first time Van Ness has destroyed Cardano. Eleven months ago, the Ethereum faithful pointed out Cardano’s lack of trades. At the time, Van Ness believed the Charles Hoskinson-led project might not be able to do this compete with other projects in the DeFi space, especially since it had a higher market cap than Uniswap [UNI].
That time, Van Ness repeated the idea that Cardano failed to boast an impressive number of transactions, saying:
“Yesterday there were barely more than 0.5 transactions per second.”
At the time of printing, Cardano’s TVL was 161.72 million – down 9.83% in the past 30 days. In contrast, Base’s TVL was $185.9 million and is up 10.18% over the past seven days.
Source: DefiLlama
The TVL measures the unique deposits coming into a protocol. When the measure increases, it means an increase in confidence. But when the TVL drops, it means a project was not at the highest level of health, so market participants avoid making deposits in the protocol.
Therefore, the disparity in the TVLs highlights how the Basis has captured the hearts of market participants, while the ADA has not been particularly attractive to investors.
Development up, activity down
While Cardano may be disappointed in terms of the TVL, development activity picked up pac. According to Santiment, ADA’s development activity was high at 91.9.
The development activity of a project that tracks the work done in the project’s public GitHub repositories. Thus, the increase in the project’s development activity means that a lot of dedication and code commits were focused on a secure upgrade of the Cardano blockchain.
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Meanwhile, Cardano has not had the same development activity experience with its active addresses. At the time of writing, the number of 30-day active addresses had dropped to 639,000, after peaking at over a million around mid-June.
Source: Sentiment
The decrease in active addresses is consistent with Van Ness’ view that Cardano lacked traction. However, this is not confirmation that unique addresses would continue to overlook the ecosystem.