Better Buy: Ethereum vs. Cardano

Which crypto asset will generate bigger gains this year?

Last Updated January 31st 2022
5 Min Read

Ethereum (ETH) and Cardano (ADA) are two smart contract platforms known for their unique blockchain technology and features. Both cryptocurrencies are poised for significant growth throughout the year. 

Ethereum has increased from $770 in January 2021 to above $2,530 today. This crypto rallied more than 404% within a year or so. At the same time, Cardano had remarkably soared from a price range of $0.20 since the beginning of 2021 to $1.02 today. Thus investors are curious to know which is a better buy today Ethereum or Cardano. 

Better Buy: Ethereum Vs. Cardano: An Analysis

Ethereum was developed with the Silicon Valley approach to improve product interactions at a faster pace. In comparison, Cardano went with a scholarly approach, with a steady development by releasing a polished and highly functioning product at once. 

For comparing the value of ADA and ETH, let's delve a bit deeper into their key differences and features. 

Ethereum: Is Ethereum The Future Of Blockchain Technology?

Thanks to its ambitious developers, Ethereum today has the largest developer community among other cryptocurrencies. In November 2021, Ethereum hit an all-time high of $4,859.50. With a market cap of $305 billion, ETH is in the 2nd position of the CoinMarketCap ranking. 

2021 was a good year for Ethereum, like other cryptocurrencies. It has a price value of $2,531 with a 24-hour trading volume of $10 billion. A silver lining for Ethereum is, apart from just a digital currency, it is also a platform for the execution of decentralized smart contracts.

One of the best ways to value a cryptocurrency is to analyze its network effects; as more people use the network, the more valuable the crypto becomes. Ethereum's vast network has made it one of the most valued cryptocurrencies in the market today. With a wide network that includes decentralized derivatives, over a dozen stable coins, digital art marketplaces, decentralized lending platforms, exchanges, etc., Ethereum becomes a hot topic of discussion among new users and investors. 

A significant factor that boosts Ethereum's value today is an increase in DeFi platforms, adoptions, and its latest updates. Increasing the network's scalability to 1,00,000 transactions per second was the initial phase of the latest upgrade, Ethereum 2.0. Thanks to the high rise in DeFi platforms, this upgrade sky-rocketed Ethereum's value. 

The most under-appreciated development of ETH2 is the technique known as Signature aggregation. It was a cryptographic breakthrough and has facilitated the maximum participation of all the consensus participants in the staking.

With all its technical developments and DeFi adoptions in place, there is a good chance of Ethereum becoming the future of cryptocurrency. At present, Ethereum's path is shining with new opportunities and high growth. 

Matthew Gould, the founder and CEO of Unstoppable Domain's said, "Expect Ethereum daily users to grow the fastest of any blockchain - including Bitcoin (BTC) - with all the new DeFi apps it brings to the table."

Read More: Ethereum Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

‍Cardano: Will ADA Be The Future Facet Of The Global Digital Economy On Blockchain?

Since its initiation in 2017, Cardano has seen major growth and gained almost millions of dollars in capitalization. Today, it ranks 6th in the CoinMarketCap ranking with a market cap of $34.5 billion. It had a successful hit of an all-time high of $3.10 on September 2, 2021.

The major success behind Cardano's high price value is its pre-planned rollouts. Unlike Ethereum, Cardano releases blockchain in stages, of which the first was its staking mechanism. The next stage will be the smart contracts followed by scaling solutions and many more. This strategic method ensures that the Cardano network functions seamlessly without any hassles.

Besides this, a prominent feature that weighs Cardano higher than Ethereum and Bitcoin is its Proof-of-Stake (PoS) algorithm, which Ethereum has in the pipeline. This increases ADA's value as it increases stability and protects it from several attacks. The PoS algorithm also facilitates users with more tokens to create and add a new block to the blockchain.

A prominent feature that can drive more users to create a smart contract in Cardano's network is the intelligent Marlowe programming language. It is a highly simplified programming language that even helps people with zero programming experience to create a smart contract. If this feature works as expected, Cardano will attract millions of users.

Cardano is designed with a unique two-layered network that reduces slower transactions, network congestion, and higher fees. It will further solve an all-time issue of scalability among cryptocurrencies boosting its value as a utility token in the market. Currently, the price of ADA is $1.02 with a 24-hour trading volume of $808 million. 

What boosts Cardano's growth in the market today is its past, current, and future upgrade. The Shelley era, the second upgrade, was a massive success as it decentralized the core of the system. Investors are curiously waiting for its third upgrade, the Goguen era, which will open up various tangible opportunities for developers and businesses. 

Cardano will be accessible to a wider audience with the Goguen upgrade, and it enables several financial and business experts to create smart contracts. With all these in-store, Cardano might achieve its mission of being the future facet of the global digital economy on blockchain soon. 

Check Out: Cardano Price Prediction

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Should You Buy Ethereum Or Cardano? The Bottomline 

Well, concluding on the debate between Ethereum VS Cardano, which is a better buy, it is seen that both coins are poised to perform remarkably over time. Both are exceptionally good investments to consider for the long haul, as acceptance of the digital assets is growing in today's world. 

Ethereum is a more mainstream, popular, and stable coin, while Cardano is made more of an advanced blockchain technology that shows steady growth. Analyzing their price range, market cap, and growth potential, it is now time for investors to choose the asset class that they prefer to secure their wealthy future.

Despite all its differences, both Ethereum and Cardano are highly advanced cryptocurrencies with a lot of potential for the future.

So which is the better buy, Ethereum or Cardano? It is difficult to answer since both have their unique features. But since Cardano is a third-generation crypto created as an advanced version of Ethereum, it might have more potential for growth in the future. 

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