The eighth-largest cryptocurrency, Cardano (ADA), has shown some indications of life during the last two weeks. The network’s minor improvements were what actually encouraged investors’ hope. After that, Cardano must work even harder to surpass $4 and catch up to Ethereum in terms of market capitalization.
According to CoinGecko’s data, ADA is now trading at about $0.48 with a 7-day gain of almost 5%. So, without a doubt, the network requires a lot of support if it wants to move the token beyond the $4 threshold successfully.
Related Readings | Bitcoin Drops Below $22,000, Is Peter Brandt’s Analysis Still In Play?
In recent years, Ethereum has ranked second to Bitcoin in value. Despite a significant increase in value since its inception, Cardano is certainly one of the most significant blockchain networks in the market, and its native coin ADA ranks in the top 10 currencies.
Per the Nomics statistics, the market cap of ADA is currently approximately $16.21 billion, while the market cap of ETH is roughly $147.93 billion. ADA accounts for just 10.93% of Ethereum’s market capitalization.
Well, to match the market valuation of Ethereum, Cardano will have to surge by 9.25x. ADA would then trade at a price of $4, representing a gain of 823.39%.
Furthermore, ETH has gained nearly 13% over the past week and is presently trading at $1,215.41. According to CoinGecKo statistical data, the daily trading volume for ETH is over $13,928,520,299, while the daily trading volume for ADA is almost $799,420,941. In addition, ADA is down 84% from its peak of $3.09 on September 2, 2021, or almost 10 months ago.
Ethereum Vs. Cardano
Anyone interested in cryptocurrency must be aware of the Cardano vs. Ethereum debate. Because both networks offer comparable services, Cardano (ADA) and Ethereum (ETH) are frequently compared.
This is due to the features that both Cardano and Ethereum’s blockchain technologies offer. As a comparison, the infrastructure of Ethereum is more constrained, which results in higher operating costs, higher energy consumption, and slow transaction speeds.
ADA, which positions itself as an alternative blockchain, essentially seeks to offer a solution to Ethereum’s issues. But unfortunately, its progress has been sluggish.
The method used to build blocks and validate transactions, though, is what distinguishes them from each other. The main distinction at this time is that Cardano’s proof-of-stake Ouroboros consensus algorithm is proven to be more adaptable. The method is more efficient than Ethereum’s proof-of-work blockchain.
Development Of Cardano To Compete With Ethereum
Following the Alonzo upgrade, the Cardano network was compatible with smart contracts. The so-called Ethereum killer is aiming to introduce the most anticipated Vasil hard fork.
Technology’s inherent traits that keep it current and make it susceptible to aging are development and upgrades. Network changes termed “hard forks” are also necessary for blockchains.
Related Readings | Bitcoin Signals Short Term Bullishness, Move Towards $24K Next?
Analysts anticipate that Cardano will keep its worth in the future. Moreover, they believe rebuilding will be favorable to the project, given that its forthcoming Vasil hard fork may present a chance for a price hike.
Nevertheless, the good news is this Vasil, a much-anticipated upgrade from Cardano (ADA) that seeks to boost the network’s scalability and performance, has “successfully” completed its testnet run and is scheduled to go live on the mainnet (public blockchain) within 30 days.
Featured image from Flickr, chart from Tradingview.com