Is Cardano Being “Aggressively Priced” An Understatement?

Among the growing ecosystems, Cardano has priced more aggressively, on-chain analytics dashboard Messari tweeted. The upcoming Vasil hard fork is slated to bring significant improvements to Cardano, specifically higher throughput and smart contract enhancements.

Under the report titled “Non-EVM chains in the bear market”, Messari wrote Cardano was priced aggressively compared to its adoption metrics.” For the blockchain, development activity remains key.

In the chart highlighted in red, Messari observed that the PoS blockchain was way ahead of its competitors like Solana [SOL], Tezos [XTZ], Algorand [ALGO], and Neo [NEO]. ADA’s transaction and Total Value locked [TVL] multiple stood at 240 and 127.

For those new to the market, Transaction multiples are a type of valuation metric that plays a key role, as they make the investor aware of the value of a particular kind of asset or firm based on recent trends.

Cardano scoring high in the category could imply being”overvalued” here.

Peter Mauric who is a top exec at Parity Tech, a blockchain infrastructure builder reacted to the report by saying “Aggressively priced” is an understatement. “It should have about the same or lower market cap as MoonbeamNetwork. And it won’t keep up with moonbeam’s tech roadmap long-term [or short-term or medium to term]”.

In response to that, the community-focused Twitter account, ADA Whale commented, “For all of what’s coming, Cardano is an absolute bargain. No idea what Moon Beamer is.”

“Cardano is Fairly Priced”

He also believed the metrics used by Messari were outdated in reference to the chart provided in the report, “Convinced that applying these sorts of traditional multiples — especially when based on inaccurate or flawed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.”

Refuting claims of Cardano being either overvalued or undervalued, ADA whale stressed that the blockchain, in fact, has a fair value,” ADA has fallen back to a perfectly neutral valuation.”

The popular influencer then went on to add that TVL figures are fake and are pumped by VCs. “Look at a crypto valuation in two stages. In the early years [now-2025?] it’ll mostly be about network growth. Beyond that, valuation likely matures to other frameworks. IMO blindly focusing on TVL etc metrics missed the point.”

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.