Expert Urges Crypto Holders: Sell Your ADA Now – Here is Why

• K33 Research warns against investing in Cardano due to lack of transactions.
• Analyst Anders Helseth criticizes Cardano’s token for having no significant utility.
• Cardano’s future deemed bleak, likened to fading networks like IOTA and NEO.

In a recent post, K33 Research’s chief researcher, Anders Helseth, urged cryptocurrency community members to steer clear of the layer-1 blockchain known as Cardano . Helseth warned that due to the utter absence of significant transactions on the Cardano network, the value of the ADA token is destined to diminish to nothing over time.

Helseth’s reasoning was founded on multiple elements. To begin with, he contended that a smart contract platform such as Cardano should possess a significant purpose for its cryptocurrency. Yet, according to Helseth, Cardano lacks any significant utility for its token, nor does it have a believable path to acquiring one.

Additionally, the analyst stated that there is no evidence of Cardano being utilized for any purpose. Despite recognizing that 90,000 transactions occur on the network daily, Helseth mentioned that these do not correspond to significant transactions.

Elaborating on the matter, the analyst indicated that the lack of stablecoins like USDT or USDC on the Cardano platform indicates minimal DeFi engagement. The report highlighted Helseth’s observation that the absence of these widely used stablecoins suggests little activity in the DeFi space on Cardano.

Backing up the assertion, the analyst contended that if there was significant activity on Cardano, Tether and Circle would have launched their stablecoins on it. The analyst pointed out that the only existing ‘stablecoins’ are 20 million Cardano-backed stablecoins, which are currently valued at $0.76 on the dollar, essentially amounting to nothing, according to Helseth’s statement.

At the same time, the analyst depicted a pessimistic forecast for Cardano. He specifically pointed out that the network is likely to slowly diminish in significance and fade away due to insufficient momentum. Helseth cited IOTA, NEO, and EOS as instances of networks that have faced comparable challenges.

Expounding further on the reasons behind ADA’s market capitalization surpassing $19 billion, the analyst shed light on the fact that it is among the cryptocurrencies heavily promoted to prospective digital asset investors. Helseth commented:

Cardano also has an enticing story for newcomers, with Cardano being branded as “the peer-reviewed research-driven blockchain network”.The scientific mumbo-jumbo story will fool more people into Cardano, but the best bet is that they are growing ever fewer by the day.

In a different context, the analyst highlighted that pricing indicators suggest that ADA is slowly fading from the cryptocurrency landscape. Specifically, Helseth mentioned that ADA has failed to experience a surge similar to other smart contract cryptocurrencies, which he interprets as a sign of a coin on the decline.