The eighth largest cryptocurrency, Cardano, has shown some signs of momentum over the past two weeks. The minor network upgrades are what really encouraged investors. After that, Cardano needs to work to break above $4 and catch up to Ethereum in terms of market capitalization.
According to data from CoinGecko, ADA is currently trading at around $0.48 with a 7-day gain of nearly 5%. So, without a doubt, the network needs a lot of support if it wants to push the token past the $4 threshold successfully.
In recent years, Ethereum has ranked second behind Bitcoin in terms of value. Despite a significant increase in value since its inception, Cardano is certainly one of the most important blockchain networks in the market, and its native currency ADA ranks in the top 10 currencies.
According to statistics from Nomics, the market capitalization of ADA is currentlyaround $16.21 billion, while that of ETH is around $147.93 billion. ADA is only 10.93% of Ethereum’s market capitalization.
To match the market valuation of Ethereum, Cardano will need to be multiplied by 9.25. ADA would then trade at a price of $4, representing a gain of 823.39%.
Separately, ETH has gained nearly 13% over the past week and is currently trading at $1,215.41. According to data from CoinGecKo, ETH’s daily trading volume is over $13,928,520,299, while ADA’s daily trading volume is nearly $799,420,941. Furthermore, ADA is down 84% from its high of $3.09 on September 2, 2021, which is almost 10 months ago.
Ethereum vs. Cardano
Anyone interested in cryptocurrencies should 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 blockchain technologies offer. By comparison, Ethereum’s infrastructure is more constrained, resulting in higher operating costs, greater power consumption, and slow transaction speeds.
ADA, which positions itself as an alternative blockchain, essentially seeks to offer a solution to Ethereum’s problems. But unfortunately, his progress is slow.
The method used to construct the blocks and validate the transactions, however, is what sets them apart from each other. The main distinction right now is that Cardano’s proof-of-stake-based Ouroboros consensus algorithm is proving 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 is compatible with smart contracts. The so-called Ethereum killer aims to introduce the most anticipated Vasil hard fork.
The inherent characteristics of technology that keep it current and make it susceptible to aging are development and upgrades. Network changes, called “hard forks”, are also necessary for blockchains.
Analysts predict that Cardano will retain its value going forward. Additionally, they believe that the rebuild will be favorable to the project, given that its upcoming Vasil hard fork could present a chance for a price hike.
Nevertheless, the good news is that Vasil, a highly anticipated Cardano (ADA) upgrade that aims to boost network scalability and performance, has completed “with success” its testnet and should go live on the mainnet (public blockchain) within 30 days.
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