The debate intensified as ADA dropped out of the top 10 cryptocurrencies by market capitalization following a steep decline from its all time high.
Development of Cardano began more than a decade ago, although the network officially launched a few years later. Many supporters consider the 2021 Alonzo upgrade, which introduced smart contract functionality, to be the project’s most significant milestone.
While ADA remains one of the most popular cryptocurrencies among retail investors, the project continues to face criticism from analysts who question whether its valuation matches its actual network activity.
Analysts Call Cardano Potentially Overvalued
Crypto commentator Satoshi Flipper, who has built a large following on Crypto X, recently shared another analyst’s criticism of Cardano alongside the question, “Is Cardano the most overvalued blockchain in crypto?”
The analysis focused heavily on the blockchain’s relatively weak on chain metrics. According to the figures cited, Cardano currently holds around $128 million in total value locked within decentralized finance applications. The network also reportedly generates only about $1.3 million in daily decentralized exchange volume, supports roughly $26 million in stablecoins, and records approximately 17,000 active addresses.
Analyst Zen Hour described the network’s activity as extremely small compared to its valuation. Despite ADA’s major price collapse from previous highs, the token still maintains a market capitalization of roughly $9 billion, keeping it among the top 15 cryptocurrencies by market value.
Zen Hour argued that investors may eventually need to decide whether Cardano is still being valued based on its current ecosystem or simply on memories from previous market cycles.
ADA Still Far Below Its All Time High
The Alonzo upgrade arrived during ADA’s explosive rally in the third quarter of 2021. During that period, the token surged alongside the broader crypto market and reached a record high above $3.
However, the rally quickly turned into what many traders described as a classic sell the news event. Since then, ADA has failed to regain its former momentum.
Even during the broader crypto rally in 2025, when bitcoin and several major altcoins climbed to fresh highs, ADA remained far below its previous peak. The token was unable to move beyond $1.30 and has since fallen even further.
ADA is now trading below $0.25, representing a staggering decline of more than 92 percent from its all time high in 2021.
Although the wider crypto market has struggled since last October, critics argue that Cardano’s losses go beyond a normal correction. With the token still trading dramatically below its peak levels, concerns continue to grow about whether the project can reclaim its previous market relevance.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
