Skip to main content

Cardano Just Took Another Major Hit Amid Zombie Chain Allegations

Cardano analytics platform TapTools has announced that it is shutting down, providing a major blow to the ADA ecosystem. This comes amid allegations that the network is a ‘Zombie Chain’ with low user activity. 

Cardano’s TapTools Announces It Is Winding Down

In an X post, TapTools announced that they are preparing to wind down their operations within the next two weeks. The Cardano platform cited a leadership issue as the reason for this decision, noting that two of its co-founders, the CTO and COO, departed earlier this year. Following that, their backend developer stepped into the role of CTO but has now also departed the firm. 

TapTools said the technical knowledge to “responsibly operate” and maintain the platform cannot be replaced overnight, which has prompted this decision to wind down. The analytics platform is notably one of the most prominent projects in the Cardano ecosystem, serving over a million users. 

Meanwhile, the platform revealed that the economics of running their operations remain challenging, citing infrastructure, development, and support costs. They added that operating a platform that supports the ecosystem at scale is expensive. This comes as the bear market puts pressure on crypto projects. 

The Cardano price recently crashed to a five-year low, further sparking bearish sentiments. ADA is now down over almost 50% year-to-date (YTD) and has dropped out of the top 10 cryptos by market cap, currently at 15th. TapTools’ decision to wind down also comes amid allegations of Cardano being a zombie chain. 

DeFiLlama data shows that ADA’s DeFi total value locked has dropped 15% to just above $100 million. The top five protocols on the network have also seen their TVL drop over 10% in the last seven days, signaling a significant drop in network activity. 

Cardano Founder Comments On TapTools’ Winding Down

In an X broadcast, Cardano founder Charles Hoskinson admitted there will be a “wave of failures,” with several projects winding down due to current market conditions. He cited his proposal to use treasury funds to help struggling projects, which was voted down. Hoskinson said there doesn’t seem to be any desire within the ADA community to take Cardano projects to the next level, given that his proposal was rejected. 

The Cardano founder warned that the second half of the year will likely be tough for the network as more decentralized applications in their DeFi ecosystem fade away. He further remarked that he is not sure what role he can play in resolving this, as he keeps being criticized for being responsible for the collapse of the ADA price. Hoskinson noted that he doesn’t have any special powers within the ecosystem that would allow him to make any unilateral decisions. 

At the time of writing, the Cardano price is trading at around $0.16, down over 16% today, according to data from CoinMarketCap.

Cardano

from Bitcoinist.com https://ift.tt/9d1UX6s
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin Goes Official: Texas Becomes 1st US State With BTC Reserve

Everything is big in Texas, many would say. Today, the state is looking past its current state of finances by adding Bitcoin to its coffers–and making things bigger in terms of its economic implications. Texas became the first US state to establish a crypto reserve . On March 7, 2025, legislators passed Senate Bill 21, which gives the green light to the state to direct public funds toward Bitcoin and other digital assets. The action has elicited both support and concern, with some viewing it as a prudent financial hedge and others warning of potential pitfalls. A Push For Bitcoin In The Lone Star State For months, Texas has been seeing increasing favor for the idea of a Bitcoin reserve. Senator Charles Schwertner introduced SB 778, a measure that proposes establishing a strategic stockpile. Including the top crypto asset into the state’s financial reserves was meant to help cushion inflation and economic uncertainty. Texas officials, especially Lieutenant Governor Dan Patrick, wh...
Post a Comment
Read more

Slow And Steady Wins? Bitcoin To Hit $1M Via ‘Pump’ And ‘Consolidate’ Pattern: Expert

The bull cycle was deemed over when the price of Bitcoin tragically fell toward $75,000 earlier in March 2025. Having notched an all-time high of above $100,000, most investors feared that the premier cryptocurrency had already reached its top for the current cycle. Contrary to popular belief, the price of Bitcoin has since forged multiple new all-time highs, with the current record high at around $122,800. Interestingly, the now-popular market consensus is that it is only a matter of time before the BTC price reaches a seven-figure valuation. How Will Bitcoin Hit $1 Million In 10 Years? In a recent post on the X platform, Blockware Bitcoin analyst Mitchell Askew has joined a growing list of experts to put forward a $1 million projection for the premier cryptocurrency. According to the analyst, the price of BTC is expected to achieve this major milestone over the next 10 years. What’s interesting is that Askew expects the Bitcoin price to reach a $1 million valuation in the next ...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more