Cardano took a huge hit when a new study showed that ADA dominates dead coins.

According to a recent study conducted by AlphaQuest Research, Cardano (ADA) has been one of the major ecosystems where coins have died or failed over the past few years.

Cardano: Dead Coin King

According to a recent report from AlphaQuest, Cardano is the top network in terms of dead coins in 2024. Studies have shown that 74% of Cardano-based projects no longer exist.

Researchers used criteria such as low trading volume and liquidity, dormant or deleted X accounts, and a website that is no longer active to classify a project as a dead coin. Therefore, a blockchain with more than 50% failed projects is called dead. In addition to Cardano, Terra also experienced a similar 74% project failure rate.

AlphaQuest noted that most cryptocurrencies that emerged during the 2020-2021 bull market have since disappeared. This suggests that 2021 has been quite a difficult year for new cryptocurrency projects.

In addition to Cardano and Terra, AlphaQuest also highlighted several other blockchain ecosystems that have significant amounts of dead coins, including Harmony ONE, NEAR Protocol, Zilliqa, Celo, and Moonrive.

“A significant number of cryptocurrency projects last for a short period of time, with 21.77% lasting less than a year and 11.65% lasting less than six months. Only 22.40% of cryptocurrency projects survive successfully for more than four years,” AlphaQuest postulated.

Cardano Benefits from Avalanche Outage

Nonetheless, Dan Gambardello, founder of Crypto Capital Venture, praised Cardano after rival blockchain Avalanche suffered an outage of nearly five hours. Avalanche stopped block production around 11:00 AM UTC on Friday.

Gambardello emphasized his belief that institutions will soon begin investing in ADA because it has a “unique peer-reviewed research approach that ensures a resilient and trustworthy foundation.”

Avalanche’s native token, AVAX, is down more than 7% over the past week, while Cardano’s ADA is up 1.5% over the same period. At the time of publication, AVAX was trading at $36.72, about 74.7% below its November 2021 high of $144.96.

Noting Avalanche’s downtime, Gambardello reminded his

Taking a more cautious stance, traders appear to be moving funds from the Avalanche ecosystem to Cardano, seeking safety amid the volatility following the massive outage. According to Dan, Cardano is “on its way to becoming the only chain focused on a truly decentralized governance system while maintaining consistent uptime.”

In particular, low-latency blockchain Solana also suffered a five-hour outage due to extreme congestion earlier this month.