Cardano’s [ADA] price rise this summer has been nothing short of spectacular. The euphoria surrounding the implementation of functional smart contracts has been driving its price to new heights. With the upcoming hard fork just hours away, FOMO has engulfed the cryptocurrency market. But what follows next might not favor the bulls.
Historically, when ADA crowds get overly excited or fearful, the price tends to drop. This trend was observed by the popular crypto-analytic platform Santiment which tweeted,
“Cardano jumped a quick 12.5% in the past 15 hours following last week’s FUD toward the 3 market cap crypto project. Social spikes continue to tell the story. When the ADA crowd gets overly hyped or fearful, the price trend will typically shut down.”
Not just FOMO, Cardano ecosystem sees massive FUD
Cardano-related FUD influencing social sentiment isn’t new. While FOMO has intensified as the market participants anticipate a protocol upgrade that will expand the network’s utility, FUD engulfed the Cardano ecosystem’s DeFi frontier. As a result, the blockchain network and the teams behind it have faced severe criticisms from the Ethereum community.
One such is Polygon advisor, Anthony Sassano, who also happens to be one of the most vocal critics of ADA. Sassano recently opined that the blockchain network cannot “peer review” its way out of “fundamental issues” such as concurrency while referring to Minswap, the first-ever DApp to go live on Cardano public testnet multi-pool DEX.
It all started when many Minswap users revealed facing difficulties with respect to using the token swaps that started getting concurrency-related errors. The Minswap team addressed the issue in the following tweet:
Shortly thereafter, many in the community blamed Cardano’s decision to use the Extended UTXO accounting model and speculated that all the decentralized finance [DeFi] DApps powered by the network would experience the same concurrency problems such as Minswap. They also raised questions regarding the viability of smart contracts infrastructure on top of the blockchain.
Responding to the accusations, Rick McCracken, the host of the Cardano Effect podcast, said that Minswap’s concurrency issues are “being blown way out of proportion by FUDsters.” Following the fiasco, Minswap confirmed shutting down its testnet temporarily.