Solana vs Cardano: Will ADA Overtake SOL in 2024?

Solana vs Cardano: An Overview

The realm of blockchain is teeming with diverse crypto projects that undergo continuous evolution and enhancement. Among the prominent projects in today’s landscape are Solana and Cardano, which have captured significant attention in recent years owing to their pioneering approaches to advancing blockchain technology.

To know the two networks better, let us take a deep dive into their functionality!

What is Solana?

Solana functions as an open-source blockchain, supporting smart contracts and NFTs on a permissionless, high-speed layer-1 blockchain. Conceived by Anatoly Yakovenko, Greg Fitzgerald, Stephen Akridge, and Raj Gokal in 2017, Solana operates on the proof-of-history (PoH) consensus mechanism.

In the proof-of-stake (PoS) model, block verification is conducted by the machines of coin owners who stake their coins as collateral to validate blocks. During the inception of Solana, blockchain transaction speeds were notably sluggish, averaging around 15 transactions per second, whereas mainstream payment processors like Visa and Mastercard achieved nearly 65,000 transactions per second.

Yakovenko and Gokal aimed to develop a new blockchain capable of global-scale usage.  Presently, Solana boasts an impressive transaction speed of approximately 65,000 transactions per second, establishing itself as the most widely utilized blockchain technology globally, which is attributed to its cost-effectiveness and rapid transaction capabilities.

Key Features of Solana:

• High Throughput: Solana is designed to process a large number of transactions per second, aiming to provide a scalable infrastructure for decentralized applications.
• Low Transaction Costs: The platform aims to keep transaction costs low, making it more feasible for users and developers to interact with the network.
• Proof of History (PoH): Solana’s PoH is a historical record that helps in establishing the order and timestamp of transactions before they are added to the blockchain. This contributes to the overall efficiency of the consensus mechanism.
• Proof of Stake (PoS): Solana uses a PoS consensus algorithm to secure the network. Validators are chosen to create new blocks and validate transactions based on the amount of crypto they hold and are willing to “stake” as collateral.

Read More: Solana vs Ethereum

Latest News on Solana Blockchain

• The potential launch of Solana’s ETF on the Toronto Stock Exchange marks a pioneering move for North America, offering investors exposure to SOL crypto. Filed by 3iQ, it includes staking benefits and aims to capitalize on Solana’s growing ecosystem and market potential, reflecting increasing institutional interest in digital assets.

3iQ Corp. is pleased to announce that we have submitted a preliminary prospectus for The Solana Fund (QSOL) in Canada in relation to an initial public offering.

This continues our track record of innovation, and if receipt of applicable regulatory approvals is obtained, the… pic.twitter.com/7ghv05f8gU

— 3iQ Digital Asset Management (@3iq_corp) June 20, 2024

What is Cardano?

Cardano, a decentralized proof-of-stake (PoS) blockchain platform, operates with the ADA token. Guided by a scientific philosophy and committed to research, Cardano uses PoS, where block verification involves machines owned by coin holders acting as collateral.

Developed by experts in cryptography and blockchain, Cardano focuses on sustainability, scalability, and transparency within its ecosystem. As an open-source initiative, it aims to create an inclusive infrastructure for global financial and social applications.

Utilizing the Haskell programming language for enhanced testing and correctness, Cardano plans to evolve into a smart contract platform, surpassing previous protocols and establishing itself as a stable and secure hub for enterprise-level decentralized applications (DApps). 

Key Features of Cardano

• Staking: ADA holders actively participate in Cardano’s staking mechanism and receive rewards in additional ADA tokens, ensuring network security and decentralization.
• Decentralized Applications (DApps): Developers build and deploy DApps on Cardano.DApps span various domains like finance, gaming, supply-chain management, and identity verification. 
• Smart Contracts: Cardano serves as a platform for creating and executing smart contracts. ADA is used to pay for computational resources needed to run smart contracts.
• Governance: ADA holders actively participate in Cardano’s governance through ‘Project Catalyst.’ They propose and vote on protocol upgrades, improvements, and ecosystem changes.
• Cross-Chain Interoperability: Cardano plans to implement interoperability with other blockchains.ADA could facilitate transactions or interactions between different blockchain networks, enhancing overall connectivity.

Know More: Cardano vs Polkadot

Latest News on Cardano Blockchain

• Cardano’s “Chang” upgrade is poised to enhance its blockchain with features aimed at improving scalability, security, and user experience. This includes optimizations in transaction processing and governance, reinforcing its role in the decentralized finance landscape. The update marks a significant step forward for Cardano as it continues to evolve and expand its capabilities.

It looks like June will be the month that Cardano Node will reach 9.0. This means that Cardano is Chang fork ready and waiting for 70 percent of the SPOs to install the new node. Then, a hard fork can occur pushing Cardano into the Age of Voltaire.

It’s the most significant…

— Charles Hoskinson (@IOHK_Charles) June 9, 2024

Read: A Complete Guide to Cardano’s Voltaire Era: Chang Hard Fork

Solana vs Cardano: Comparative Analysis

Additional Read: Ethereum vs Solana vs Polygon

Technical Analysis: Solana Price vs Cardano Price

Solana vs Cardano | Source: TradingView

In the comparison between Solana vs Cardano, both the altcoins experiencing bearish trends, but their recent price actions reveal differences in their technical strength. Solana price, after a significant 750% surge since October 2023, has faced a downturn, currently trading below the key psychological level of $150 and the 50-day EMA, with brief support at the 200-day EMA. Despite this, Solana price’s potential to regain bullish momentum by reclaiming $173 and targeting $190-$200 makes it relatively stronger. In contrast, Cardano price, despite a modest recovery driven by market optimism, remains weaker as it struggles to stay above the critical $0.70 threshold and has formed a bearish death cross by slipping below both the 50-day and 200-day EMAs. While both tokens have key support levels, Solana’s higher potential for recovery indicates a stronger technical position compared to Cardano.

Solana Price Prediction

SOL/USD | Source: TradingView

Since October 2023, Solana price has surged nearly 750%, securing a top-five position in crypto market cap. It briefly surpassed Binance Coin (BNB) to claim third place, excluding stablecoins. After recovering from early 2022’s bear market, SOL closely tracks Bitcoin’s price. Currently, SOL price trades below $150, breaking the 50-day EMA. April 2024 saw a drop from $200 to $135, but bullish momentum could resume if SOL price re-enters its upward channel. Potential for new all-time highs suggests a target range of $190-$200 after breaching $173, with strong support anticipated at $131/S1 Fibonacci level and the 200-day EMA.

Cardano Price Prediction

ADA/USD | Source: TradingView

Amid the broader crypto market resurgence driven by Bitcoin’s record highs, Cardano’s ADA price has seen a modest recovery but remains below the critical $0.70 threshold after a late March correction. In November and December 2023, ADA price surged from below $0.30 to nearly $0.67. After stabilizing, it briefly exceeded $0.70 in March 2024 before retracing. ADA price has since turned bearish, slipping below the medium-term trendline and both the 50-day and 200-day EMAs, forming a bearish death cross, indicating potential selling pressures. Upcoming targets for ADA price are $0.50 and $0.55, aligned with June 2024 Fibonacci levels, while the current price near $0.40 serves as crucial support, corresponding to the S2 Fibonacci pivot.

Should You Buy Solana vs Cardano?

When considering Solana vs Cardano, it’s essential to examine their recent performance and technical indicators. Solana has experienced a significant price surge of nearly 750% since October 2023, placing it among the top five cryptos by market capitalization. Despite recent bearish trends, Solana’s ability to potentially regain bullish momentum by reclaiming $173 and targeting $190-$200 highlights its resilience. Conversely, Cardano, after a notable surge in late 2023, has struggled to stay above critical levels and formed a bearish death cross, indicating potential continued downward pressure. Both tokens face significant support and resistance levels, but Solana’s higher potential for recovery positions it as relatively stronger. Investors should consider these factors, along with their own risk tolerance and investment strategies, when making decisions.

How to Invest in Solana and Cardano? 

Investing in crypto is super simple, safe, and secure with the CoinDCX app. It doesn’t matter whether you want to buy Solana or wish to trade Cardano’s price today; we have got you covered. 

Here are the 4 simple steps to buy your first SOL or ADA with CoinDCX. 

1. Sign up on CoinDCX
2. Complete your KYC
3. Link your bank account and add funds
4. Buy Solana (SOL) or Buy Cardano (ADA)