Anthony Sassano, a well-known Ethereum proponent, claims that Cardano’s $35 billion market cap is not justified as it doesn’t have smart contracts so let’s read more in our latest Cardano news today.
Cardano is in the spotlight again with its price not following the recent downtrend on the market. ADA is now up on all time frames and managed to claim the well-reserved third sport in terms of market cap. However, the ethereum proponent, Anthony Sassano thinks that the Cardano fundamentals are not as strong for Cardano to be on the third sport and to have such a massive market cap.
This week was quite tough for the entire market especially since BTC crashed the most of all coins, with the others also being in the red including Ethereum. ETH dropped more than 20% over the past week while Cardano shows no signs of slowing down. The cryptocurrency is still in the green according to the data from CoinGecko, recording a weekly increase of almost 30%. As it can be seen in the charts, ADA manages to recover from the recent correction in a brilliant fashion and it is already trading above the level from which it broke down.
This made it the third-largest crypto by market cap which hit $35 billion, meaning that its market cap is now worth around 21% relative to the one of Ethereum. With the ADA bulls rejoicing, some didn’t see the merits of its market structure and its valuation. According to Sassano, this is only a clear example of why the market runs on a narrative rather than on fundamentals.
The fact that Cardano, a platform that doesn't have smart contracts, is worth $35bil based purely on narrative & promises is the perfect example of why crypto runs on 99% narratives, 1% fundamentals.
Even worse, the market is saying that Cardano is worth 25% of Ethereum.
Wut.
— Anthony Sassano | sassal.eth
(@sassal0x) February 26, 2021
The fact that Cardano doesn’t have smart contracts and it is worth $35 billion based on narrative, is only a good example of why Crypto runs on 99% narratives and 1% on fundamentals. What’s even worse, some think that Cardano is 25% of Ethereum and many are agreeing that the retail investors are what boosts the price of ADA especially because of the new developments. A few days ago, Gene Simmons from the popular band Kiss, revealed that he had purchased $300,000 of the cryptocurrency because“cryptocurrencies like Bitcoin […] are beyond the reach of most people. […] I like ADA because anyone can invest.”
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Source: https://www.dcforecasts.com/cardano-news/ethereum-proponent-claims-cardanos-huge-market-cap-isnt-justified/
