## Complete Guide to ADA in Chinese: How Cardano (ADA) Transformed from "Obscure" to a Top 10 Market Cap Public Chain

When it comes to public chain investments, most people only know Bitcoin and Ethereum. But if you've looked at the market cap rankings, you'll notice an interesting phenomenon: despite DeFi ecosystems being far less developed than Ethereum, why does ADA (Cardano) remain steadily in the top ten?

Today, we’ll explore this "low-profile yet deeply capable" Cardano blockchain and see why it has gained market recognition.

## What is ADA? And what is its parent chain, Cardano?

**ADA (Cardano)** is the native token of the public chain Cardano, which is essentially a decentralized blockchain platform similar to Bitcoin, Ethereum, Binance Smart Chain, etc., providing secure and transparent infrastructure for application development.

What sets it apart is its impressive development background. In 2015, Charles Hoskinson (co-founder of Ethereum) and Jeremy Wood established IOHK in Hong Kong to develop Cardano. **In 2018, after the mainnet launched, Cardano officially entered the blockchain ecosystem.**

## Why create Cardano/ADA? What are the pain points of first- and second-generation public chains?

This question warrants deep thought. At that time, projects like Bitcoin, Litecoin, and Ethereum already existed. Why develop a third-generation public chain?

**The core reason is that the existing pain points were unresolved:**

First-generation chains led by Bitcoin suffered from **network congestion and exorbitant Gas fees**, which severely impacted user experience.

Second-generation platforms like Ethereum made improvements but introduced new issues—**cross-chain interoperability difficulties and community forks** that fragmented the ecosystem.

Against this backdrop, Cardano was born. To break the deadlock, the Cardano team developed an innovative consensus mechanism called **Ouroboros**, an upgraded version of Proof of Stake (PoS), which can protect network security while offering excellent scalability. To address interoperability and forking issues, Cardano employs sidechains and smart contract technology to facilitate cross-ecosystem collaboration.

## Real-time market data and market cap performance of ADA

**Current data (January 4, 2026):**
- Real-time price: $0.40 USD
- 24-hour change: +4.63%
- Circulating market cap: $1.481 billion USD

Although the DeFi ecosystem is still under construction, ADA’s impressive market cap demonstrates market trust. What does this indicate? The market values not only current application activity but also long-term potential and technological strength.

## What are the advantages of ADA as a public chain token?

### Technical "domination" advantages

ADA uses a PoS consensus mechanism that is not only energy-efficient compared to Bitcoin’s PoW but also **achieves a transaction processing speed of 250 TPS through a dual-layer architecture**—far surpassing Bitcoin’s 7 TPS and Ethereum’s 30 TPS.

In other words, within the same time frame, Cardano can process more transactions, making its network efficiency a different level altogether.

### A top-tier development team with clear division of labor

ADA is driven by three independent organizations:
- **IOHK**: Core technical development led by the founders and elite team
- **EMURGO**: Project oversight and funding support
- **Foundation**: External affairs and ecosystem expansion

This structure helps avoid over-centralization of power in a single organization, enhancing decentralization.

### Solid user base and strong resilience

ADA has been around for a long time, having weathered multiple bear markets, cultivating a loyal supporter base. Its high market cap and liquidity reduce entry risks for newcomers.

## Shortcomings of ADA

### Ecosystem development is still in early stages

Compared to Ethereum’s vast DeFi ecosystem, Cardano’s application layer remains in its infancy. More critically, ADA **is not compatible with Ethereum Virtual Machine (EVM)**, which directly limits other projects from migrating to Cardano.

### Development progress is disappointing

Cardano’s DeFi layout is relatively lagging. Even with applications like Sundae Swap, issues such as platform failures and transaction errors frequently occur. Other plans, like financial operating systems and micro-lending, face ongoing delays.

**Data comparison clearly illustrates the issue:** According to DeFi data platforms, Cardano’s total value locked (TVL) is only $165 million, ranking 18th among all public chains, a stark contrast to its market cap position.

## Future prospects? Analyzing Cardano’s five-phase development roadmap

Despite current challenges, Cardano has a clear long-term plan divided into five phases:

- **Byron**: Mainnet construction, ADA issuance, community foundation
- **Shelley**: Achieving full decentralization
- **Goguen**: Launch of smart contracts, ecosystem acceleration
- **Basho**: Performance optimization, cross-chain interoperability upgrades
- **Voltaire**: Community governance empowerment

This roadmap demonstrates Cardano’s ambition—not chasing hype blindly but steadily advancing technological iteration and ecosystem expansion.

## How to participate in ADA investment? Three mainstream methods

### Method 1: Staking ADA for passive income

This is a way to participate in Cardano’s consensus and earn rewards simultaneously. You can delegate ADA to a staking pool, which represents your stake in network consensus and shares the rewards.

Staking is usually done via the official Daedalus wallet, and also supports Ledger, Exodus, and other third-party wallets. Different platforms may offer varying staking yields, so investors can choose based on their situation.

### Method 2: Spot trading—The most classic investment approach

Buying and holding ADA directly is the most common method, suitable for medium- to long-term investors optimistic about its prospects. You can trade ADA/USDT on mainstream exchanges.

### Method 3: Contract trading—Leverage for short-term opportunities

If you prefer short-term trading and want to profit from price fluctuations quickly, contract trading offers more flexibility.

**Basic features of ADA contract trading:**
- Support up to 10x leverage
- Minimum trading unit: 1 lot
- 24-hour trading available
- Cash settlement

You can go long when bullish or short when bearish to profit.

## Summary: Is ADA worth investing?

As a representative of third-generation public chains, ADA’s technological innovation is unquestionable, but its ecosystem still needs time to mature. It’s neither a "dark horse" nor a "hype target," but a project with real strength that has yet to explode.

The key question is: Can Cardano successfully push forward with Goguen and subsequent updates to attract more applications and ecosystem migration? If the ecosystem becomes active, ADA’s market cap potential remains large. But if development continues to lag, the gap with other chains will only widen.

For investors, the focus should be on **short-term development progress and long-term ecosystem maturity**—this is the core criterion for evaluating ADA’s investment value.