Stuttering Cardano Handed Lifeline Under New Emurgo Deal

• Cardano has lost its shine in recent months.
• Emurgo teams up with GSR markets to address multiple issues.
• ADA price action is stagnant.

Cardano has struggled to keep pace with competing chains in recent months, slipping down in the market cap rankings and facing criticism for its lack of mass market appeal.  

However, in a bid to recapture the buzz of the past, Emurgo has secured a major partnership with GSR Markets. The global crypto trading firm will provide liquidity and participate in growth opportunities within the Cardano ecosystem.

Cardano Ecosystem Gets Major Boost

Attempting to reinvigorate the Cardano ecosystem, GSR Markets is tasked with market-making services for additional liquidity and identifying and participating in growth opportunities to expand Cardano’s reach.

Market makers like GSR play a vital role by buying and selling tokens. This process provides the liquidity necessary to ensure a free-flowing market without major price disparities or illiquidity issues. 

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The growth opportunities GSR will pursue include evaluating investment prospects in promising Cardano-based projects, collaborating on initiatives to improve interoperability between Cardano and other blockchains, as well as promoting educational content to onboard more users and developers to the ecosystem.

Commenting on the partnership, CJ Fong, head of EMEA business development at GSR Markets, stated that the firm is pleased to support Cardano as it seeks “the next phase of growth through unique investment opportunities.”

Aside from Fong’s optimism for the future, ADA has faced considerable price weakness in recent months.

ADA Struggles

Cardano’s native token ADA has faced challenges in reclaiming its $0.81 yearly high, achieved on March 14. Following this peak, ADA has experienced a significant decline, dropping by 50% to a new yearly low of $0.401 by April 13. Since hitting this low point, the token has ranged between $0.422 and $0.523, with few signs of breaking this slump.

ADAUSD daily chart on Trading View

Many see this lackluster price action as symbolic of Cardano’s wider issues in recent months. Observers have attributed the project’s struggles to a range of problems, including poor marketing efforts that have failed to attract mainstream attention and strong competition from rival blockchains.

Last month saw TON surpass Cardano to claim the ninth spot by market cap rankings. TON recently rolled out its “proof-of-personhood” protocol, enticing Telegram users to exchange palm prints for TON tokens. Moreover, the project gained a substantial edge following the addition of major stablecoin provider Tether into its ecosystem .

On the Flipside

• Cardano was a top 3 token until the end of September 2021.
• The total value locked (TVL) in Cardano DeFi is $388 million, ranking the chain 20th by TVL , behind chains such as Ultron, Hyperliquid, and Pulsechain.

Why This Matters

Cardano’s unfulfilled potential and slipping market cap ranking are the result of multiple issues. It is unlikely that the influence of GSR Markets alone can turn this situation around. 

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