Cardano vs Ethereum: Comparative Analysis of ADA vs ETH

Introduction

Ethereum, in recent times has already stood as the leader within the decentralized space, having a huge share in DeFi, DEX, DApps, NFTs and more. While the second-largest crypto does have some limitations, projects like Cardano emerged as a strong alternative to Ethereum. Currently, Cardano & Ethereum are the two largest competing projects working on smart contracts. 

The comparison between both the projects has been carried out many times as their offerings collide notably. Moreover, the developers also prefer both the chains to build & run programs. While the core of any blockchain is the algorithm it follows to validate the transactions, Cardano & Ethereum use different mechanisms.

Will Cardano ever surpass the crypto with nearly 10 times its market capitalization?

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Key Takeaways

• Ethereum has always been considered a haven for any investment while Cardano also has emerged as an Ethereum killer in recent times
• Cardano is the invention of one of Ethereum’s brainchild, not competing to emerge as one of its tough competitors and also aim to replace it
• Considering the price actions, both the assets could register a bearish quarterly close but may end up closing the yearly note with elevated prices 

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What is Cardano

Founded by the co-founder of Ethereum, Cardano is a multi-layer blockchain operating on the Proof-of-Stake to validate the transactions. The core of the Cardano consensus is the Ouroboros algorithm that aims for a high level of security with efficiency. 

It is a third-generation blockchain after Bitcoin & Ethereum that focuses on scalability, interoperability & sustainability. Cardano also focuses on swelling costs, usage of energy and transaction time. 

Deep Dive into How Cardano works?

Just a little over a month ago, IOHK developers had successfully hard forked the Cardano testnet with the Vasil upgrade. Cardano’s Vasil Hard Fork is the next step in its plan to improve upon the speed and scalability of the network. This essentially brings the project one more step closer to dethroning the largest smart contract and DeFi platform out there – Ethereum. With this latest upgrade, Cardano’s developers hope to improve the efficiency of smart contracts to make Cardano cheaper and faster to use.

We’re happy to report that today at 20:20 UTC the IOG team has successfully hard forked the #Cardano Testnet. This is an important next step in the journey towards the Vasil upgrade on mainnet. 🧵

1/10 pic.twitter.com/9F9vzec0pK

— Input Output (@InputOutputHK) July 3, 2022

 

What is Ethereum

Ethereum is the second-largest cryptocurrency after Bitcoin founded by Vitalik Buterin & Gracin Wood. It is considered to be one of the primitive decentralized chains built on blockchain technology defying the issues of the Bitcoin blockchain. Ethereum is the home of decentralized Apps, Finance, etc and many other products that run with the help of Smart Contracts. 

The platform is powered by its native currency Ether or simply ETH which is the base of any smart contract. In the upcoming days, the platform is all set to upgrade to ETH 2.0 or Ethereum 2.0 where the drift from Proof-of-Work to Proof-of-Stake is scheduled to take place. With the shift, the validators are expected to take over the miners to make the entire process of validating the transaction energy efficient. 

Additional Read: How Ethereum Works?

Ethereum’s Merge – which is set to transition the Ethereum blockchain from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism. This move is intended to create a more energy efficient ETH network that has greater scalability capabilities too.

According to official sources, this move is expected to come by as soon as by the middle or end of September, 2022.

https://twitter.com/evan_van_ness/status/1547638881478004736?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1547638881478004736%7Ctwgr%5E6637b87569b4e9bbe60bf90e506cfdb4f2ba862a%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fblog.coindcx.com%2Fcryptocurrency%2Fbitcoin-vs-ethereum%2F

Additional Read: Ethereum Merge Update

Cardano vs Ethereum

Comparison Basis	Cardano	Ethereum
Launch date	27-September-2017	Whitepaper was published in 2013 but the network went live in 2015.
Founders	Charles Hokinson	Vitalik Buterin along with Gravin Wood and many other developers
Blockchain protocol	Ouroboros Protocol	Currently Proof-of-Work mechanism which may be soon switched to Proof-of-Stake
Token type	ADA	ETH
Use case	Smart-Contract, NFT, DApps & Crypto supported	Smart-Contract, NFT, DApps & Crypto supported
Market Cap*	INR 1.30 trillion	INR 11.52 trillion
Circulation Supply**	33.74 billion ADA	121,293,488 ETH
Consensus method	Proof-of-Stake(PoS)	Proof-of-Stake & Proof-of-Work
Twitter	https://twitter.com/InputOutputHK	https://twitter.com/ethereum

Pros & Cons of Cardano & Ethereum

Pros

Cardano	Ethereum
Cardano has a great development team with a pre-reviewed platform to ensure the stability	No intermediary is required to carry out transactions and hence a better, low cost & efficient way to send money across the world
It is a multichain layer that uses settlement layer & computational layer to ensure unlimited scalability & quick transactions	There is no downtime as the servers are not controlled by a single entity
Cardano is open-sourced platform with code written in Haskell programming language	Ethereum is environmental-friendly and easy to mine, unlike Bitcoin
The chain is secure and provides digital identity to unbanked citizens across the globe.	As the protocol is open-source, the community is growing constantly being stronger, efficient and secure

Cons

Cardano	Ethereum
Cardano has not accomplished with development phase with a lowered pace	Complicated programming language used called solidity
Limited transactions can be processed within a second	Low Network Stability and prone to network congestion
The platform is more prone to 51% attack as the algorithm that claims to sync the ledgers appear to be unrealistic	Currently little less cost-effective due to miners rewards that may be fixed with the merger
75% of ADA is not in circulation but staked	Ethereum has no specific rules for a fork as a fork can take place whenever people holding ETH disagree with any ongoings on the network

Cardano vs Ethereum Price

How High Cardano (ADA) Price Will Go in 2022?

Cardano’s price has been swinging within an extended descending triangle ever since it reached its peak in September 2021. The asset had gained significant bullish momentum in mid-March, but a couple of events impacted the price negatively. Currently, ADA price is trading at 18-month low levels and waiting for the right time to break above the range-bound consolidation.

The ADA price could not display any major change ahead of the quarterly close as the market conditions are pretty uncertain. However, with the beginning of Q3 or by the mid, an ease in the selling pressure may elevate the prices to some extent. By the end of 2022, the price could break above INR 60 to reach INR 100 levels.

Additional Read: Cardano Price Prediction 

How High Ethereum(ETH) Price Will Go in 2022?

The Ethereum price ever since recorded its peak in Q4 2021, has been trading within a huge descending channel. Currently, it appears that the price is trying hard to halt the descending trend but the bears still appear to be active and may jump in action any time from now. However, since the beginning of June, the volume has risen sharply while dominated by the bears. 

Therefore, a significant inverse movement may still be in place despite the minor upward swings. To end the Q2 trade, the prices are expected to hover close to INR 1 lakh and continue to accumulate in the first few days of Q3. By the end of 2022, the ETH prices could rise high and settle above INR 2 lakh or INR 2.2 lakh.

Additional Read: Ethereum Price Prediction

Cardano vs Ethereum Technical Analysis

Source: Tradingview

• Cardano & Ethereum price trend appear to have decoupled recently since the beginning of June as ETH was massively impacted by liquidity crisis on a couple of lending platforms 
• ADA price is heavily consolidating between INR 33 & INR 40 from more than a week and displaying a possibility to test the lower support again before heading towards the resistance.
• While ETH price after bouncing from INR 1055, smashed INR 1220 levels and began shedding the gains as bulls may stand exhausted
• Currently, both ADA & ETH prices could shed some of their gains as the bears are gaining immense strength and may try hard to record a bearish weekly close
• Therefore, the assets are feared to drain another 8% to 10% before the beginning of the fresh week trade.

Check out latest: Cardano Price to INR  &  Ethereum Price to INR

Should You Buy Cardano or Ethereum

Cardano & Ethereum, both have secured their respective places within the top 10 for a long time? Moreover, ADA was the top 3rd token after Bitcoin & Ethereum for some time and was expected to challenge ETH’s dominance shortly. While Ethereum can handle 10 to 15 transactions per second, ADA can manage 250. However, with the launch of ETH 2.0, the TPS is expected to spike to 100,000 reducing the congestion and fees. 

Currently, both the assets have drained a little after undergoing a notable upswing and hence one can expect the resurgence of a strong upswing soon. Cardano is displaying huge strength and hence the Q3 & Q4 may be profitable. On the other hand, with the PoS, and PoW merger, ETH price is also expected to gain significant bullish momentum.  

Therefore, one can consider both the assets as profitable investments.

Tips for Trading Cardano or Ethereum

• Before diving deep into any trade, first know about the asset you want to invest in and understand its use cases and the problems it claims to solve
• Go through the project details commonly called the ‘WhitePaper’ to get acquainted with the technology used and the process of validating the transactions
• Later find a suitable trading platform with enhanced security like CoinDCX and register yourself verifying your profile
• Analyze the price actions and movements of ADA & ETH for some days and try to figure out the best time to enter the deal

Also Read: Top 10 Crypto to Invest

How to Invest in Cardano or Ethereum

If you are looking into investing in Cardano or Ethereum, CoinDCX is the best-suited platform. Along with the best deals in the market, you get access to attractive in-App features on registration. Investing has become simpler & safer with Crypto SIPs with CoinDCX App where you can invest in any assets in easy weekly installments. 

*Price Data as of August 2022

FAQs

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The above information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational & educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, virtual digital assets/ crypto products or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as a legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.

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