Between January 2021 and January 2022, Ether (ETH) has outperformed Bitcoin (BTC), rising 394% compared to the leader’s 47%. This established him as the second most dominant coin on the market.
However, despite the fact that the price of ETH has skyrocketed and its market capitalization has grown exponentially, its battle for market dominance has been hampered by competitors and new entrants to the space. I’m here.
ETH also has many competitors trying to usurp its market power, such as the ADA token on the Cardano blockchain.
Cardano only exists on one-up Ethereum
Ethereum blockchain is Smart contract all-rounder On top of being able to build decentralized applications (or dApps). The code is written in Solidity and is open source, so anyone can create applications that work on the blockchain.
Many coins created to perform this way include Uniswap, which created DeFi (decentralized finance), Chainlink, and AAVE.Among the most popular Ethereum Today’s dApps are NFT exchanges such as LooksRare and OpenSea, including MetaMask, a wallet that people use to store their Ethereum-based tokens and connect to NFT exchanges.
Cardano founder Charles Hoskinson was one of the original Ethereum developers, along with Gavin Wood, Anthony Di Lorio, Joseph Lubin, and Vitalik Buterin. Hoskinson split from the Ethereum team in June 2014. Ethereum non-profit organizationHoskinson wanted to create a company, while Vitalik and others created the Ethereum Foundation.
Hoskinson’s original intentions for Cardano seemed rather vague and didn’t go far beyond the desire to create a blockchain that was technically superior to Ethereum. And in a way he succeeded.
Cardano, written in Haskell, is also an all-rounder for smart contracts. You can build dApps. however, It differs from Ethereum primarily in that it is a Proof of Stake (PoS) network.in contrast to Proof of Work (PoW) networks.
Of course, the difference here is that PoW blockchains use miners who create tokens to validate transactions, whereas in PoS networks transactions are validated by stakers.
As has been widely reported, PoW blockchain consumes a lot of energy compared to PoS networks.But Ethereum is Nearing the Final Stage stage An upgrade to PoS known as “The Merge”.
And not to be left behind, Cardano has its own “Vasil” update. It is designed to increase efficiency, boost blockchain throughput, and facilitate the creation of smart contracts and decentralized apps.
Gas Fees Didn’t Turn ETH Fans Off
Ethereum and Cardano’s biggest beef has traditionally been the latter very high transaction costsThese “gas fees” are typical of PoW blockchains and have been regularly used as a bar to beat Ethereum. ADA fees, on the other hand, have historically averaged around 0.18 ADA, or about 9 cents in dollars.
However, higher transaction costs and exorbitant gas fees prevented users from leaving the Ethereum blockchain to migrate to other blockchains.
Ethereum blockchain is currently The most popular blockchain in NFTfollowed by Solana, the Cardano blockchain is not even listed in the top 17. DeFi, as of June this year, Ethereum ruled the world The DeFi market accounts for up to 63% market share, while Cardano ranks 27th with just 0.17%.
Cardano is not as transparent as Ethereum
Cardano has taken the lead as Ethereum’s main competitor, and despite the fact that its technology is far more efficient, Cardano has to make a giant leap to overtake Ethereum. Hmm.
As of today, Cardano accounts for just 1.64% of the total cryptocurrency market — certainly an improvement from 0.74% in December 2020 — about 71,000 active address. ETH, on the other hand, boasts of his 200,000 addresses.
In October 2021, Cardano surpassed 100,000 transactions per day, which is also dwarfed by Ethereum surpassing 1 million transactions per day.
Another problem facing Cardano, which aims to overhaul the world’s leading alternative coin, is notorious opacity When revealing who holds that token.
Traders don’t necessarily appreciate or care about the fact that Cardano uses better technology than Ethereum. Most people who invest in cryptocurrencies do so for speculative purposes.
ETH holders, on the other hand, will appear relatively soon.For example, thanks to a transaction linked to his main wallet, Vitalik announced last May that the coin was $3,811We also know that he holds most of it and currently owns at least 290,000 tokens.
Read more: Here’s what you need to know about the Ethereum 2.0 merge.
Joseph Rubin claimed that he and his company, ConsenSys, do not own more than half of all ETH tokens. In a recent clip published on Twitter, Vitalik also confirmed that the Ethereum Foundation sold Ether tokens during the peak of the bull market. Hoskinson, by contrast, has been less aggressive about his or his company’s holdings, with Finbold reporting that 94% of his ADA supply is stored in his 10% wallet. I’m here. This is a staggering number, and understandably, some traders may fear being pulled over the rug.
Is a fixed supply Cardano’s trump card?
Finally, if Cardano challenges the altcoin summit, the fixed supply issue could be in its favor. In contrast to Ethereum, whose supply is not fixed, Cardano’s supply is capped at his 45 billion tokens, with a current supply of around 33 billion.Meanwhile, the current supply of Ethereum is around 121 million tokenshas grown by more than 50% since November 2016.
This raises the question of whether Ethereum will be able to sustain its price if it continues to increase its supply, especially when a merge occurs and control of the network is effectively handed over to the verifier.
It takes 32 ETH to become a validator, and putting together a validator, theoretically, Authority to change or alter the supply of ETHAs such, it remains to be seen how the new validators will use the supply to play the market. Some may think that limiting supply is in their own interest.
Statistics don’t lie and most cryptocurrencies are said not to succeed. Cardano has not only survived so far, it has thrived and grown, though not to the extent that it poses a serious threat to Ethereum. Primarily Solana, backed by Sam Bankman-Fried. All this means that Cardano can offer excellent trading opportunities, but all cards are stacked in favor of Ethereum.
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The primary author of this article has over $1,000 USD in Ether.
Edit 16:00 UTC, Aug 2: The work has been edited to read it 94% of the ADA supply is stored in just 10% of wallets instead of 10.