- With Cardano’s Mary update and token earnings ready to compete with Ethereum, measurements show that Ethereum is still king. The Cardano Foundation’s cryptocurrency ADA reached its all-time high of $ 0.97 on February 12th. Starting the year at $ 0.18, ADA has thus gained 438% to date.
With Cardano’s Mary update and token earnings ready to compete with Ethereum, measurements show that Ethereum is still king. The Cardano Foundation’s cryptocurrency ADA reached its all-time high of $ 0.97 on February 12th. Starting the year at $ 0.18, ADA has thus gained 438% to date.
The factor behind your growth
Cardano’s growth is related to the network updates Cardano runs on its blockchain network.
On February 3, Cardano’s development firm Input Output Hong Kong successfully performed a hard fork and applied the Goguen local token upgrade, also known as the Mary upgrade, to Cardano’s test network, which turned the blockchain into a multi-asset network similar to Ethereum. .
The team plans to launch the mainnet at the end of February. Other features of the Goguen update will be made available simultaneously according to the different stages of the Cardano roadmap.
In terms of functionality, this upgrade will equalize Cardano’s native tokens with ERC-20 fungible and ERC-721 fungible tokens on Ethereum. For the first time, users on the Cardano blockchain will be able to create their own tokens, such as exchangeable tokens or NFTs. In addition to these similarities with the Ethereum blockchain, there are design differences between Cardano’s native tokens compared to Ethereum tokens.
The biggest difference after the upgrade is that there are no “execution fees” usually charged to a user when interacting with the token-driven smart contract known as gas fees on the Ethereum blockchain.
ADA struggles 4th by market value
ADA recently hit a three-year high and surpassed Polkadot’s DOT to become the fourth largest cryptocurrency currently in circulation. Unlike coins like Dogecoin (DOGE), which has recently received a lot of attention from the media and even personalities like Elon Musk, Cardano’s growth can be attributed to its solid foundations and working principles.
“The blockchain ecosystem surrounding the modern world: lack of speed, high fees, etc. “it adopts a” research first “approach to solve various problems.
Cardano plans to get more traffic, as institutional investors are an important catalyst for such markets.
In addition, the implementation of Haskell, a functional programming language known for Cardano’s high-responsibility applications, can open up different business use cases involving large enterprises and even governments. Pfeifer also said:
“Cardano could capture a completely different market share from Ethereum – national-level identity solutions, back-end financial infrastructure, and strong enterprise use cases.”
Ethereum is still king
Although the concept of “Ethereum killer” has existed since Ethereum gained a monopoly in blockchain use cases, there was no network capable of generating users and developers as Ethereum now boasts.
An important consideration when evaluating competition for Ethereum will be the scalability issues that Ethereum 2.0 proposes to solve with a transition to a proof-of-stake protocol. Cardano’s scalability is expected to come through Hydra, which has multiple models that offer high throughput, measured in transactions per second. Each “Hydra” model can potentially handle up to 1,000 TPS.
Pfeifer said TPS could not be the only measure of scalability due to Cardano’s Hydra nature, because different types of transactions can be carried out on the blockchain.
Currently, there are more than 1,400 independent staking pools operating on the Cardano blockchain. However, Ethereum currently has the largest pool of developers creating widely used applications and interfaces such as MetaMask, Compound, and Protocol, including the core Ethereum protocol itself.
This high developer activity is critical to the growth of any blockchain and network effects. It’s also important to create smart contract standards and best practices as Ethereum tries to do. In addition, the scaling issue is currently addressed by second layer networks such as Optimistic Rollups and ZK-Rollups.
ZK-Rollups can also be thought of as a stand-alone piece of data that allows experiments through various data and execution models still embedded in Ethereum. These Rollups are part of the Eth2 roadmap and aim to make Ethereum more scalable in the near term.
Metcalfe’s law states that the value of a given network is directly proportional to the number of users on the network. This may be perhaps the most important measure for valuing a network as it implies the activity occurring in the measured network. Ethereum has about 71,000 active users in Cardano
Since the daily active addresses are more than 760,000 compared to, it surpasses Cardano in this area.
Regardless of its applications and perceived competition, it is clear at this point that Ethereum is far ahead of Cardano in the blockchain race, considering the users and the number of DeFi applications based on the respective blockchains.
With its strong foundations, Cardano is likely to successfully catch up with Ethereum over time, as has been done by DNATags recently; this could lead to the migration of some DeFi applications from Ethereum to Cardano. However, Pfeifer approaches the breaking of hegemony in a positive light:
“It is likely that in the future, multiple blockchain protocols will successfully coexist in the field. Every Cardano organization focuses on interoperability for the good of the entire blockchain industry rather than direct competition and comparison. We are open to working with other blockchains. “