Bears often point to Cardano’s still very low trade value locked (TVL) within its Decentralized Finance (DeFi) ecosystem and refer to its as a “ghost chain” given its low daily transaction count.

Cardano’s TVL was last around $182 million, orders of magnitude below the TVL on its proof-of-stake layer-1 blockchain rivals like Ethereum and Solana.

Meanwhile, daily transactions taking place on the Cardano blockchain were last around 61,000, also way below rival blockchains.

Cardano’s bloated market value appears to be based upon expectations for ecosystem growth that are yet to really materialize, the critics argue.

As Cardano fails to keep up with competitors, it could slowly begin falling into relative irrelevance and that could create big bearish headwinds for the ADA price.

That could send ADA as low as $0.05, some have warned.

(by Joel Frank)