In-Depth Analysis of Cardano: Why is ADA Able to Remain in the Top Ten Crypto Assets, and What Are Its Prospects?

What is Cardano? Understanding the Public Chain Ecosystem Behind ADA

ADA is the native token of the Cardano blockchain, which itself is a public blockchain platform similar to Bitcoin, Ethereum, and others, providing infrastructure support for decentralized applications.

The background of Cardano’s inception is worth noting. In 2015, former Ethereum co-founder Charles Hoskinson and Jeremy Wood established Input Output Hong Kong (IOHK) in Hong Kong to develop the Cardano project. After three years of development, the mainnet officially launched in 2018, marking the birth of this ambitious third-generation public chain.

Why Create ADA? Analyzing Cardano’s Market Positioning

Before Cardano’s emergence, the blockchain world already had pioneers like Bitcoin and Ethereum. So why did the founders put effort into developing a new public chain?

The answer lies in the pain points of previous public chains: Bitcoin, despite being the first mover, was plagued by network congestion and high Gas fees, which hindered user experience. Ethereum attempted to address these issues but introduced new challenges—lack of interoperability between platforms and frequent community forks, which fragmented the ecosystem and hindered coordinated development.

This market gap inspired the creation of Cardano. The project introduced an innovative algorithm called Ouroboros, a proof-of-stake (PoS) mechanism that protects network security while offering good scalability. To solve interoperability issues, Cardano employs side chains and smart contract technology to bridge platforms.

ADA’s Market Position and Performance

As of December 2025, ADA’s current price is $0.36, with a 24-hour decline of -2.03%, and a circulating market cap of $13.05 billion, maintaining a top position among crypto assets. This performance is especially notable given that the ecosystem is still in its early stages of development.

Technically, ADA’s PoS consensus mechanism is more energy-efficient than Bitcoin’s PoW; its dual-layer architecture enables a transaction processing capacity (TPS) of 250 per second, far surpassing Bitcoin’s 7 and Ethereum’s 30.

What Are ADA’s Advantages?

Clear organizational structure and strong development momentum. Cardano is driven by three teams: IOHK handles technical development, EMURGO oversees project progress and funding, and the Foundation acts as an external diplomatic window. Roles are well-defined, and the team is formidable.

Historical accumulation and user recognition. ADA was launched relatively early, having endured bear markets, and has established a stable base of long-term holders with strong risk resistance. Coupled with its top-tier market cap and liquidity, it is attractive to new capital.

Explicit development roadmap. Cardano has planned five phases: Byron (mainnet construction and token issuance), Shelley (decentralization), Goguen (smart contract deployment), Basho (performance optimization), and Voltaire (community governance). The goals are clear, and progress is orderly.

Notable Disadvantages

Severely lagging ecosystem development. According to DeFiLlama data, Cardano’s TVL is only $165 million, ranking 18th among all public chains. Its protocol count and active users are far behind mainstream chains like Ethereum. Additionally, ADA does not support the industry-standard Ethereum Virtual Machine (EVM), limiting cross-platform ecosystem migration.

Development progress is disappointing. The project’s development speed is relatively slow, with several key projects stuck in difficulties. The DeFi plan only launched in 2022, and after releasing DEXs like Sundae Swap, bugs and transaction errors have been frequent. Financial systems and micro-lending plans also face issues.

Market Outlook: Potential or Bubble?

ADA faces an interesting paradox: high market cap ranking but ecosystem development lagging behind. This mismatch reflects investor expectations of its potential but also exposes the gap between actual progress and expectations.

To change the situation, Cardano needs to increase investment in ecosystem applications to attract more developers, rather than relying solely on technological innovation. Otherwise, as other chains rapidly iterate, ADA may gradually be marginalized.

How to Participate in ADA Investment?

Investors can engage through various methods:

Staking ADA for rewards. Delegating tokens to staking pools to participate in consensus and share network rewards is a low-risk passive income method. Wallets like Daedalus and Ledger support this, and some exchanges offer staking products.

Spot trading. Suitable for medium- to long-term investors, buying ADA directly and waiting for appreciation. Simply search for the ADA/USDT trading pair on exchanges.

Contract trading. For short-term gains and leverage, derivatives like contracts offer two-way trading and leverage options, available on certain trading platforms.

Summary: Rational View of ADA’s Present and Future

As a representative of third-generation public chains, ADA has solid technical foundations, clear development plans, and market recognition, maintaining a top ten position. However, technological advancement does not guarantee ecosystem prosperity. Its biggest challenge is balancing the current asset value with actual application needs.

Whether a long-term bull or cautious investor, it’s important to recognize that ADA’s future depends on the implementation of ecosystem applications, not just promises of technological superiority.