Grayscale report: Cardano, the third largest blockchain

Crypto-asset management company Grayscale Investments released a report to introduce readers to Cardano , the third largest blockchain by market capitalization . The report provides a unique perspective on how more traditional financial companies like Grayscale view Cardano.

Grayscale report: Cardano, the third largest blockchain

Cardano is the next generation Internet platform (Web 3.0), and its structure is based on a publicly traded blockchain encryption network. The Cardano open source software network coordinates decentralized computers around the world into a unified cloud platform that is completely owned and operated by users, and ADA tokens represent part of the ownership in the ecosystem.

This Grayscale report lists the advantages and disadvantages of Cardano, as well as an analysis of the future development trajectory. It mentioned Hoskinson’s “icon founder” status, huge community, fully open source software protocol code base, ADA’s accessibility on exchanges, and Cardano’s $1.6 billion funding.

The report also pointed out the problems of Cardano, such as strong competitors, lack of mainnet applications, low network fee income, regulatory uncertainty and network security.

The report pointed out that “Cardano still lacks the mainnet application ecosystem. Although basic smart contract functions have been added, it remains to be seen how dApps will operate, developer interest and user adoption will unfold.”

Grayscale report: Cardano, the third largest blockchain

The Grayscale report also explored possible use cases for Cardano. It shows that new tokens on the blockchain may cause ADA holders to change their assets in the short term. This situation may continue. In the medium to long term, Cardano may become a “higher beta” of Bitcoin .

The report pointed out that “whether the community has the ability to create a compelling cloud super application platform and dApp ecosystem for users will determine whether Cardano can achieve long-term success.”

Greyscale’s report also provides some metrics to measure Cardano’s growth. Last year, the fees paid to the Cardano equity pool increased approximately 65 times. Therefore, the monthly annualized value for September 2021 is $56 million. In August, this value was US$20.3 million.

Speaking of the user base, Grayscale’s report pointed out that Cardano’s active addresses have been increasing and even surpassed Ethereum this summer .

Grayscale report: Cardano, the third largest blockchain

Cardano has successfully established a large and fast-growing user community, currently has approximately 2.8 million monthly active users (MAU). In contrast, Ethereum currently has about 7 million MAUs, which is 2.5 times that of Cardano. However, since July, Cardano active addresses have been growing, while Ethereum active addresses have been declining.

Interestingly, Grayscale added ADA to its Digital Large Cap Fund portfolio in July this year. More importantly, the announcement was made before Alonzo was upgraded. Is this a sign of Grayscale’s confidence in the asset?

Finally, the report concluded, “The encrypted network is the next network and the next wave of cloud computing platforms. Cardano’s goal is to encrypt the cloud platform market. Smart contracts are a key technical function that Cardano is exploring. If successful, it will Enable the network to compete in a wider range of dApp use cases. Cardano has been able to acquire a large active decentralized user base, which has led to the rapid growth of the network. If Cardano can realize its technological vision, the network may see more Multi-utility, adoption, use and growth.”

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