- Analyst Master Kenobi characterizes ADA as a “cult coin,” claiming it benefits its founder while failing to provide value.
- Recent comparisons indicate that BNB has surpassed ADA in market capitalization, development efforts, and overall achievements.
Cardano [ADA] is a proof-of-stake blockchain renowned for its capabilities in supporting decentralized applications (dApps) and smart contracts and has sparked considerable debate within the cryptocurrency community.
Despite being ranked among the leading cryptocurrencies based on market capitalization, a prominent crypto analyst, Master Kenobi, has referred to Cardano’s native token, ADA, as a “cult coin.”
In his analysis, Kenobi juxtaposed ADA with Binance’s native token, BNB, to underline what he perceives as notable differences in their methodologies and results.
ADA versus BNB
Kenobi’s critique focuses on what he sees as Cardano’s slow advancement relative to Binance.
In a post on X, he remarked, “Nothing VS Everything in 2330 Days,” emphasizing that while Cardano has engaged in what he terms “brainwashing sessions” through extensive AMAs (Ask Me Anything sessions), Binance has prioritized utility, functionality, and alignment within the industry.
According to Kenobi, the strategic approach of BNB, which integrates adaptive technology and marketing, has positioned it as a genuine store of value, whereas ADA is perceived as a project that talks more than it delivers.
The analyst notably stated:
“In my opinion, BNB is the only coin that can genuinely be regarded as a real store of value due to its utility. ADA is merely a cult coin.”
A comparison of market performance and fundamentals
Analyzing the market performance of ADA and BNB reveals a distinct contrast. Currently, BNB’s market capitalization sits at $80.2 billion, compared to ADA’s market cap of $11.9 billion.
In terms of recent price fluctuations, ADA has seen a decrease of 5.1% over the last day and 2.1% over the past week. In contrast, BNB has exhibited greater stability, with only a 0.8% drop in the last day but an 8.1% increase over the preceding week.
These statistics imply a significant gap in perception and adoption between these two assets.
To further investigate this divergence, it’s essential to look at the foundational aspects of both assets. When evaluating development activity, data from Santiment shows a steady decline for both ADA and BNB.
Source: Santiment
Nevertheless, ADA’s development activity is currently recorded at 58.17, in sharp contrast to BNB’s significantly lower figure of 6.81. This indicates that, despite criticisms, Cardano may still have a relatively active development community compared to Binance.
Source: Santiment
Another important metric is open interest, which indicates the number of open derivative contracts, including futures and options.
According to Coinglass data, ADA’s open interest has decreased by 2.79% to $185.99 million, while its open interest volume surged by 75.51% to $291.46 million.
Source: Coinglass
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This increase in open interest volume could signal heightened trading activity or speculation surrounding ADA.
Conversely, BNB has experienced a 4.15% growth in open interest up to $532.67 million, with a significant 201% rise in open interest volume to $735.12 million, reflecting strong market activity and investor engagement.
Source: Coinglass
