Ethereum
Is Cardano or Ethereum a better investment in 2024?
Markets saw a sharp rise in the price of Ethereum this week on crypto exchanges. What’s behind this and what factors can investors consider to determine whether Ether or its friend Cardano is the better buy?
Ethereum will celebrate its birthday on July 30. It was launched in 2015 to create a “world computer” with the same Web3 blockchain properties as Bitcoin for storing money and making payments.
Cardano was launched on September 23, 2017 through initial coin offering (ICO) and founded by a co-founder of Ethereum, Charles Hoskinson. Today, it is the 10th largest cryptocurrency by market capitalization.
Ethereum market capitalization (May 22): $451.8 billion
Cardano market capitalization (May 22): $17.2 billion
Some differences between the two cryptocurrencies are an advantage for one or the other and a good reason to be bullish or bearish for ETH or ADA tokens.
But some of the differences between the two networks are more complex tradeoffs to evaluate because they give an advantage to one cryptocurrency or the other. Here are 7 key factors at play going forward Ethereum Price against Cardano:
1. ETH vs ADA – Technical Analysis (Tie)
The price of Ethereum is almost back to its ATH (all-time high) after climbing this week on Ethereum spot ETF buzz. Cardano has a long way to go. This could actually be more bullish for ADA, with more upside potential for its price.
THE recent The approval of the Ethereum ETF will shake up the entire meta for investing in Ether. If bulls push the price past $4,000, another 12.5% increase would send ETH to $4,500 – in a striking range from the previous Ethereum ATH of $4,721 in November 2021 .
Forbes recently mentioned an Ethereum price prediction of $5,000 by the end of 2024. Bitcoin ETF Issuer VanEck predicted $11,800 by 2030. Even more optimistic outlook predicts $10,000 ETH speak the end of the year.
In the short term, Cardano technical indicators and moving averages on the weekly time frame recommended “sell” on Thursday. Meanwhile, Ethereum technical indicators for the seven-day period recommended a “strong buy,” according to data from Investing.com.
2. Ether Spot ETF – Regulatory Analysis (ETH Bullish)
We cannot deny it. Charles Hoskinson definitely agree: American regulators seem to favor Bitcoin and Ethereum on Cardano and other DeFi networks.
The SEC gave the OK to Ethereum futures ETFs in October, revealing that it did not appear to consider Ether an unregistered security. However, the US regulator has classified Cardano and other cryptocurrencies as unregistered securities in lawsuits against several blockchain companies, while ignoring Bitcoin and Ether.
Like Fortune Magazine reported on May 1, “Additionally, despite launching a number of lawsuits against crypto companies since April 2023, the agency has never named Ether as collateral in its complaints. »
The SEC’s lawsuit against Ripple has lasted for years (since December 2020) and has still not been resolved. This is expensive and leaves the future uncertain for currencies in the government’s crosshairs.
Markets hate uncertainty.
This may not be fair, but it is a bullish factor for ETH and bearish for ADA.
3. ADA vs ETH – Fundamental Analysis (a wash)
Fundamental analysis is the preferred method of investors who are not totally degenerates. Instead of graphical technical analysis or meme money voodoo economics, the fundamentalist looks at an investment perspective and asks himself, what would “The Intelligent Investor” author Benjamin Graham do if he were here?
Graham says:
“The intelligent investor is a realist who sells to the optimists and buys to the pessimists. In the short term, the market is a voting machine, but in the long term, it is a weighing machine. »
If a company’s expected future earnings, discounted to the present day, exceed its current market value, then it may be a good investment. If they match or don’t match the company’s market capitalization, it may be a bad investment.
ADA: $263.8 million TVL (3% annual reward rate + Annual growth rate of 121%) / Market capitalization: $16.4 billion
ETH $64.9 billion TVL (5.5% annual reward rate + 145% annual growth rate) / Market capitalization: $453 billion
Based on the above data without further context, it appears that Cardano would be the winner, as its flows represent a much smaller portion of its market cap than Ethereum (0.019 to 0.22), but only if we expect it to grow at the same rate. rates like Ethereum in the future.
The lopsided institutional adoption between the two will make it difficult for Cardano unless it finds a use case, feature/benefit, and narrative that disrupts the cryptocurrency’s retail internet markets.
4. Cardano vs Ethereum – Gas Fees (Cat Game)
There are lower, more predictable fees on Cardano, but higher fees on Ethereum are also a feature, not necessarily a bug. They make it more expensive to misuse the network for unprofitable cybercrime, making it more secure. Big institutions like that.
This is one of the reasons why Bitcoin’s slow, expensive, industry-leading network with low transaction bandwidth conserves capital so well. In many ways, these built-in costs qualify participants better than Know Your Customer policies and automatically and without discrimination on any basis other than the ability and willingness to pay network fees.
Still for newcomers, entrepreneurs, startups and investors who are starting out with a smaller treasury, smart contract blockchain networks with lower fees like Cardano have an advantage. Transaction fees on the two networks vary greatly and peak during periods of high network usage.
5. Ease of Use – Cardano (another tie)
Some Web3 people believe that Ethereum has a usability problem. It has become too crowded with complicated, byzantine layers on top of one another, creating a steeper learning curve and potential security threats.
Blockchain advocate Daniel Cawrey wrote in a recent opinion piece on Blockworks:
“Ethereum is becoming a multi-layered, lasagna-like system in which complexity and fees push people to the margins, causing interoperability and security issues.”
While this is true, much like Ethereum’s higher transaction fees, Ethereum’s complexity may be a reason to be bullish on ETH. This could just be proof of the network’s success. As Cawrey acknowledges in his article, the network is beginning to realize its concept of a “world computer.”
Any expert in computer architecture would have difficulty explaining how a A Turing global computer that anyone can use on a peer-to-peer network would become anything but a flying monster of complexity.
6. Ether vs. Cardano Whales (ADA Bullish)
A massive whale deposit of 15,000 ETH on Kraken on May 18, spotted by Whale Alert, suggested a bear run on Ether by whales could be coming, but after the SEC approved the Ethereum ETF spot, a surge in whale-sized transactions has been net positive for the network, according to data from IntoTheBlock.
Meanwhile, Cardano whales have been extremely bullish on ADA in May. They strengthened assets in Cardano tokens by 11% in one month. Whales tend to be smart money with some of the most advanced market analysis and insights to know what they are doing, so this is positively bullish for Cardano.
https://x.com/intotheblock/status/1790774801277042863
7. Ethereum vs. Cardano Memes (ETH Bullish)
Meme coins are a definite plus for Ethereum. While Cardano has meme coins, none of them are noteworthy and they haven’t topped market cap charts like Ethereum’s SHIB, PEPE, and FLOKI.
Cardano has managed to create a simpler, less expensive Ethereum, but crypto markets tend to reward projects that pepper their technology with some meme karma. Maybe an Orange Pill Moon Boys NFT collection or something with a dog on it would do the trick.