Cardano "Aggressively Priced" for Vasil Hard Fork: Messari


Cardano "Aggressively Priced" for Vasil Hard Fork: Messari

Last Update: 2022-08-09

Cardano "Aggressively Priced" for Vasil Hard Fork: Messari

In a recent tweet, on-chain analytics firm Messari wrote, "Among the growing ecosystems, Cardano is priced more aggressively." The upcoming Vasil hard fork is slated to bring significant improvements to Cardano, specifically higher throughput and smart contract enhancements.

It states in a report titled "Non-EVM chains in the bear market" that "Cardano was priced aggressively compared to its adoption metrics." According to a chart provided by Messari, Cardano was demonstrating a transaction multiple and TVL multiple of 240 and 127, respectively, which was far higher than other blockchains such as Solana, Tezos, Algorand and NEO.

See related article: Is Cardano a Good Investment?

Transaction multiples are a type of financial metric used to value an asset. Cardano having greater transaction multiples and TVL multiples might mean, in a way, that Cardano was "overvalued" in Messari's context.

Cardano's community-focused Twitter account, ADA Whale, is of a different opinion, as he believes the metrics used by Messari were "flawed." He stated, when referring to the chart provided by Messari, "Convinced that applying these sorts of traditional multiples — especially when based on inaccurate or flawed metrics — will mean that you continue to not get what drives value in crypto."

Referencing a chart, he tagged "Market cap per protocol x subreddit size." He claims that Cardano has a fair value, saying "ADA has fallen back to a perfectly neutral valuation. Some others have some ways to go or need strong adoption to justify valuations. ALGO, EGLD undervalued?"

According to on-chain analytics firm Santiment, "Cardano shark & whale addresses have accumulated a combined ~$138M in $ADA in 8 days after the mid-June dump around the local price top. This is only a mild accumulation for now, but could get interesting if this trend continues throughout August." At the time of publication, ADA was changing hands at $0.534, down 1.04% in the last 24 hours.


Features Blogs

More Blogs