It’s a big struggle in the crypto market currently as many blockchains are becoming insolvent. But in all, it appears that Ethereum is having the largest share of the tough time primarily because of Ether that was recently sold off. That aside, the fact that Ethereum is not being quick about implementing necessary scaling solutions is compounding its problem. As such, recent market dynamics is may be favoring Cardano (ADA) more than Ethereum (ETH). The dynamics are here listed:
The Continued Sale of Ethereum by ICO
One of the main reasons Cardano may soon overtake Ethereum is the pressure that is daily mounting on Ethereum’s price. If ICOs do not put a stop to the sale of Ethereum, it is very likely that the pressure on its price would continue.
In some available estimates, the price of Ethereum could test below $50. And if this speculation should come through, it would do no small a damage to Ethereum market capitalization.
But as for Cardano, it has no such worries. This huge difference is a strong reason many believe Cardano may soon outsmart Ethereum in market capitalization.
Just like Bitcoin, Ethereum has a very critical and yet-to-be-resolved problem which is scalability. And truth be told, this is manifesting in its price. Worse still, Ethereum is taking forever to address its issue of scalability. For a very impatient crypto market, this is no small a downside.
What about Cardano? Does it have a scalability problem? Not at all. Ouroboros has ensured that Cardano’s project is very scalable. The peer-reviewed Proof-of-Stake mining algorithm of Cardano is Ouroboros. As such, not only is Cardano very efficient, it is equally highly scalable.
The implication is that when developers are considering coming up with complex applications which real businesses require, Cardano would be a go-to project ahead of Ethereum. Definitely, this would give Cardano some edge when it comes to market capitalization.
Furthermore, there are ongoing moves by Ethereum to migrate from Proof-of-Work to Proof-of-Stake. This change may sound nice theoretically but in practice can prove very difficult. In fact, it can fail. But for Cardano, it has settled for Proof-of-Stake from its outset. Over the years, Cardano has even been able to perfect its Proof-of-Stake through numerous scientific researches.
So, it should not be difficult to swallow for anyone if, in recent days, Cardano topples Ethereum by market capitalization.
Possible Gains In The Future
If we judge the two projects by their potentials of accruing gains in the future, Cardano (ADA) surely stands a better chance than Ethereum (ETH). The reasons are obvious. Cardano has a superior technicality and its price is lower than that of ETH.
So, which buyer would want to choose Ethereum with inferior technicality and relatively higher price over Cardano which has superb technicality and low price? So, except Ethereum does something drastic to its identified problems, it’s only a matter of time and Cardano (ADA) would topple it.