Lark Davis Takes Swipes At Cardano Over Low Users, Sparks Fierce Reactions From Community

Crypto investor Lark Davis has poked holes into Cardano over its low user base, but community members have swooped in to defend the blockchain. ADA defenders cite its nearly eight-year uptime, governance mechanism, scalability, and growing utility as reasons for their confidence in the project.

Lark Davis Stirs The Hornet’s Nest

Bitcoin investor Lark Davis has criticized Cardano over its dwindling user base, casting doubt over its market capitalization. In an X post, Davis disclosed that Cardano’s market capitalization sits at $32 billion despite low activity levels on the blockchain, placing it side-by-side with Pump.fun.

According to Davis, Pump.fun has emerged as one of the most popular projects in the cryptocurrency world, with a market capitalization of $2 billion. Given the activity levels of the Solana-based platform, Davis predicts a higher valuation for the project’s native token, PUMP.

“Cardano, which almost no one uses, is worth $32 billion,” said Davis. “Pump Fun, one of the most popular and highest revenue apps in the entire industry, is worth just $2 billion. HIGHER.”

At the moment, ADA trades at $0.92, rising by 13.27% over the last week in a rally driven by a raft of ecosystem activity. On the other hand, Pump.fun has surged 5% on the 24-hour chart to trade at $0.006. Amid the comparison, Davis disclosed that he owns a stash of PUMP tokens, fuelling a wave of reactions from Cardano proponents.

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Pseudonymous X account Dave took swipes at Davis’ claims of low activity on the Cardano network. Dave noted that “Cardano is widely used” and is still running after processing nearly $114 million in eight years.

Dave argued that Cardano has consistently ranked as one of the top ten largest cryptocurrencies by market capitalization since launch. He pointed to a growing ecosystem of projects around the network, with the scarce ADA serving as the backbone of the ecosystem.

Furthermore, Dave seized the moment to launch a tirade at Pump.fun, describing the token launchpad as a “value extraction platform.” Dave, who doubles as a Cardano DRep, accused Davis of receiving insider allowances in exchange for promoting cryptocurrency projects.

“A prime example of a so-called ‘Web3 influencer’ is someone like Lark,” said Dave.” A listed paid promoter who knows little about blockchain technology, yet profits massively from extraction schemes and the trust of his followers.”

While Lark is calling Cardano’s valuation into question, a textbook U-pattern is forming that pundits say can propel ADA’s valuation 6x. A 6x growth spurt will see ADA reach a market capitalization of $198 billion, potentially flipping XRP in market capitalization.