EOS vs Cardano: Which Crypto Should You Buy in 2021
EOS and Cardano may already be in your investment watchlist. But which one has the better investment in 2021 and beyond?
As the cryptocurrency sector continues to embrace the era of DeFi, competition between the smart networks appears to be hotting up, with each one striving to offer the best environment for innovation and development.
When most people think of smart networks, the first name that springs to mind is usually Ethereum. However, projects like Cardano and EOS have their own strengths and there are many crypto analysts out there that believe they both have what it takes to usurp Vitalik Buterin’s behemoth.
Both Cardano and EOS came along after Ethereum and purported to solve certain issues found with the existing smart networks at the time. Whilst Cardano was actually developed by Charles Hoskinson, the co-founder of Ethereum, EOS was a completely new project that sought to offer smart capabilities on a commercial scale.
Of course, there are other smart networks out there, but Cardano and EOS are two of the leading lights in the field and both have the potential to become true ‘Ethereum Killes’ - but which is the better investment? In the following article, we’ll take a closer look at both projects to find out which one is likely to offer the best returns in 2021.
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- Cardano vs EOS
- EOS Vs Cardano: Price History
- EOS Vs Cardano: Future Predictions
- Cardano Vs EOS: Expert Opinions
- Cardano Vs EOS: Conclusion
- EOS vs Cardano - FAQ
Cardano vs EOS: A Comparison Between Them
When it comes to market dominance, EOS vs Cardano really is no competition, but the altcoin’s rise in popularity - seemingly against the odds - is worthy of note and it continues to garner plenty of attention from both investors and crypto tech heads. So what are the key differences between EOS and Cardano?
Cardano vs EOS - The Key Differences
Anyone looking to invest in cryptocurrency in 2021 may have already earmarked EOS and/or Cardano for inclusion in their portfolio and both tokens certainly have great potential. But is one a better option than the other?
Before we get into any price analyses, it’s important to understand the key differences between the two cryptocurrencies. If we want to accurately compare EOS vs Cardano, then we need to know in which ways they are effectively competing and in which ways offer something completely different from one another.
Work started on Cardano in 2015 when Charles Hoskinson left the Ethereum fold over differing opinions on how the project should be run. Cardano then launched in 2017, touted as the first peer-reviewed crypto project, having been scrutinised by some of the world’s leading academic institutions.
The platform offers an environment where developers can leverage smart contracts and distributed apps to build new projects. Of course, Cardano also supports the secure exchange of its native cryptocurrency, ADA.
Inevitably, Cardano features numerous similarities with Ethereum, with each project effectively being set up to serve the same function. However, Cardano has several advantages over its predecessor, not least its unique, two-layer architecture which allows transactions to be processed at much faster rates.
The formula appears to have been a success, as, at the time of writing, Cardano was the fifth-largest cryptocurrency by market cap and is frequently referred to as the main rival to Ethereum as the leading smart platform.
Transactions and Speed
As demand for DeFi grows, smart networks are finding themselves increasingly under strain to keep up with the huge volumes of transactions they require. A case in point is the congestion problems that dogged Ethereum towards the end of 2020.
If there is one area in which Cardano excels, it’s in the rate at which it can process transactions. Initially, the project had been tested at 257 transactions per second - compared to around 5 for Ethereum.
However, Cardano now has its Hydra layer up and running. In theory, the base layer of Cardano handles the big things, whilst Hydra handles the faster, smaller transactions that the network needs to process. The developers behind Cardano claim one Hydra pool - or head - can process up to 100 TPS. This means that if 1000 pools are up and running, Cardano could potentially put 1m transactions through in a single second.
Cardano’s impressive processing time alone might be reason enough to add ADA to your portfolio in 2021, but investors should remember that the 1 million transactions per second figure is theoretical - Cardano hasn’t actually delivered on the claim yet.
Supply and Demand
Regardless of a platform’s technical credentials, when it comes to investment supply and demand is everything.
The total supply of ADA is capped at 45,000,000,000. In addition to this, Cardano operates a declining stake reward, which effectively acts as a deflationary mechanism, increasing the scarcity of ADA as time goes on and, in theory, increasing its value.
Demand for Cardano has remained healthy since the coin was first launched, with trading volume consistently among the top ten tokens. However, those looking to buy ADA received a boost in March 2021, when Coinbase finally started to list the token. This opened ADA up to a wider market, which inevitably had a positive effect on its price.
The original EOS whitepaper emerged in 2017 when Block.one’s Dan Larimer and Brendan Bloomer sought to create a blockchain-based public infrastructure that would provide developers with a scalable platform to support decentralized applications, smart contracts and asset creation.
Of course, this remit also pits EOS squarely against Ethereum. However, as we have seen with Cardano, the newer project has several advantages. Firstly, EOS was designed to behave like an operating system - to make it highly accessible for businesses to build their apps on without expert knowledge of the blockchain infrastructure.
Block.one has always insisted that EOS is centred on four basic principles: scalability, development, users and enterprises. It provides all the tools necessary for businesses looking to leverage blockchain technology and promises to satisfy growing demand in the future.
Transactions and Speed
Scalability is the big buzzword in the world of cryptocurrency. As DeFi takes off, many projects have been hamstrung by their lack of ability to keep up with demand. One of the main obstacles for Etheruem, for example, is simply being able to process the transactions that DeFi projects demand on the network.
This is where EOS has the advantage. Its network can create new blocks in around three seconds, compared to Ethereum’s time of 13 - 15 seconds. This is made possible through EOS’s unique consensus protocol - a delegated-proof-of-stake mechanism that was designed by Larimer himself.
EOS also makes use of parallel processing, giving it horizontal as well as vertical scalability and allowing the platform to process transactions in the most efficient way possible. As with Cardano, Larimer claims the EOS will one day be capable of processing millions of transactions per second.
Supply and Demand
EOS uses a proof-of-stake mechanism, rather than relying on miners. Block producers create and validate new blocks on the network in exchange for a reward. EOS has a built-in inflationary mechanism for this reason - originally set at 5% per annum to reward the block producers, but recently reduced to 1%.
Whilst inflationary tokens often ring alarm bells for investors, it should be remembered that this is often advantageous as it means there will always be a steady supply of tokens to support the functions of the EOS network. With Bitcoin, for example, most holders of the coin keep them for investment, so there is very little BTC actually being used for its intended purpose - retail transactions.
When it comes to demand, EOS has seen changing fortunes but generally experiences high trading volumes month to month.
EOS vs Cardano: Should You Invest in Cardano or EOS?
Whether you are looking to invest in EOS or buy Cardano in 2021 it’s important to consider not only the technical particulars of each project but also look at key indicators related to their respective price movement. After all, some of the most technically advanced blockchain projects rarely break into the top ten, whilst older cryptos - namely Bitcoin - continue to dominate.
EOS Vs Cardano: Price History
Looking at a token’s price history tells us a lot about how a cryptocurrency responds to certain market forces, as well as helping us to identify the factors which drive price growth.
Cardano has had a fairly interesting history with regards to price movement. There was a lot of hype around the project when it launched and ADA found itself very quickly in bullish territory. Having launched at less than $0.02 it reached parity with the US dollar in its first few months of trading.
However, ADA was unable to hold out at this price and 2018 saw it sinking back down to less than $0.10 per token, where it remained for most of the rest of the year, closing December at around $0.03.
Cardano’s price remained somewhat depressed for the next couple of years, with the only movement of note being a bull in August 2020 which saw prices creep up to around $0.13 per token. It wasn’t until 2021 that Cardano’s price started to make any significant movement.
The wider crypto market experienced several significant upswings early in 2021 and Cardano was on board for all of them. In fact, Cardano’s price movement maintained a more stable upward trajectory than many other tokens. ADA hit parity with the US dollar before February was out and was approaching $1.50 by mid-April.
In May 2021, ADA reached its all-time high of $2.45 and firmly re-established itself amongst the top five biggest cryptocurrencies by market cap. At the time of writing, Cardano was trading at $1.35.
EOS is another cryptocurrency that has experienced some pretty chaotic price movement in its time. In its first few weeks of trading, EOS went from $2.24 to $0.65, before suddenly surging to over $19 when the famous crypto bubble of 2017/2018 kicked in.
Another market upswing hit in May 2018, which saw EOS reach its all-time high of $22.71, before prices plummeted to just $1.85 by the end of the year. However, unlike many tokens, EOS was remarkably quick to start its recovery. As early as April 2019 it had regained $5.50 and peaked at over $8.07 during the summer.
Once again, EOS was unable to hold ground and by December 2019 it was trading back down at around $2.50. Another bull market came again in February of 2020, which saw EOS back up at around $5.30 but again the rise was short-lived.
Fast forward to 2021 and EOS didn’t quite experience the meteoric price rises that some cryptocurrencies experienced in the first half of the year. However, by May the token had soared past the $10 mark and once again started to attract investor attention.
Once again, however, EOS didn’t keep its value for long and is now trading back down at around $3.90.
EOS Vs Cardano: Future Predictions
So it’s fair to say that, at times, both Cardano and EOS have bucked market trends with regards to their price movement. This can make price predictions a little bit trickier, so the best approach is to collate several forecasts and plan an investment strategy according to the average.
If you are looking to invest in Cardano in 2021, then the good news is that ADA’s price is almost universally expected to grow. For example, WalletInvestor sees Cardano recovering well over the summer, closing August at an average price of $1.65 and potentially reaching as high as $2.45 before the year is out.
Another platform with a positive Cardano price prediction is TradingBeasts. Whilst it’s forecast is more conservative than that of WalletInvestor, it has ADA peaking at potential high of $2.17 in November, before prices cool slightly before the end of the year. However, the first few months of 2022 will see Cardano trending upwards once again.
Finally, DigitalCoinPrice sees ADA reaching the $2 mark over the summer, before dipping slightly and finishing the year at $1.80. However, by March 2022, the platform expects Cardano to be trading at $2.59 and continuing to climb over the next 6 months.
Whilst these predictions are by no means guaranteed, they all follow a similar trajectory and are perfectly realistic, assuming that there are no market upsets in the meantime.
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There are also several crypto analysts predicting price growth for EOS. According to DigitalCoinPrice’s technical analysis, we can expect to see EOS reach a potential high of $5.88 by the end of the year - although it should be noted that the platform did overestimate EOS earlier in 2021.
Meanwhile, TradingBeasts is less optimistic. It sees EOS actually going into decline in the second half of 2021. However, the altcoin’s fortunes are then expected to change as we head into 2022, when by April it should have once again reached the $5 mark.
WalletInspector believes that EOS could reach as high as $5.50 by August and revisit similar figures before the end of 2021, but not before a chaotic couple of months across September and October. According to WalletInvestor, EOS will start 2022 strongly, potentially reaching $7.10 in January.
So EOS price forecasts are a little more subdued than those of Cardano, but are positive nonetheless.
Read More: EOS Price Prediction Forecast
Cardano Vs EOS: Expert Opinions
Expert opinions are exactly that - opinions. However, they are a good window into the mindset of leading figures in the crypto space and can often shed light on things that technical analysis cannot. So what are experts' opinions on Cardano vs EOS?
Top crypto analyst Michael van de Poppe seems optimistic about both projects. Referring to Cardano’s recent price recovery, he said that “Cardano also showing continuation here, that’s great,” but he added that the $1.50 mark was a “crucial area holding for support.”
When it comes to EOS, Van de Poppe is also fairly positive, pointing out that the smart platform “looks good against Bitcoin” and its recent price run seems to be “holding up” well.
Meanwhile, cryptocurrency analyst and YouTuber Jason Pizzino appears to be bullish on Cardano. “[It] is looking strong. This is one of those tokens, one of those cryptos that I would be looking at purchasing if I see a base begin to form before other cryptos,” he said, adding “I’m not going alt shopping, but ADA is definitely high on the radar considering how strong it has been holding up.”
Finally, Analytics Insight contributor Priya Dialani has been keen to sing EOS’s praises, pointing out its technical strengths as she stated that “Considering a strong price potential and its benefits, experts believe that in the long-term EOS will grow a lot. Moreover, they are even predicting that the price can go up to US$30 by the end of 2021 or in 2022.”
Cardano Vs EOS: Conclusion
All things considered, both Cardano and EOS have the potential to be very good investments. Choosing between them is tough at this stage - especially as no one really knows what will happen with the Ethereum 2.0 upgrade - which will have a serious impact upon all other smart platforms.
Based on the current forecasts, it’s probably fair to say that investors will have to wait a little longer for returns on EOS than they will Cardano, but when it comes to technical particulars, there is very little between the two projects.
That being said, there’s no denying that Cardano is the bigger network right now - the fifth-largest cryptocurrency by market cap, it has a fairly strong following across the industry and EOS has a lot more ground to cover to ever seriously rival Ethereum.
Whether you choose to invest in EOS or Cardano, remember that these are riskier tokens and the comparatively ‘safe’ money is still with Ethereum. For the time being.
Where to Trade Cardano and EOS
If you’re looking to buy Cardano or EOS, then you’ll need to find a platform listing the tokens. If you don’t already use a crypto exchange, then we recommend eToro. The platform is fully regulated by the FCA and has one of the strongest reputations in the industry.
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EOS vs Cardano - FAQ
How do I choose between EOS vs Cardano?
On the surface, EOS and Cardano bring similar things to the table - both offer a versatile blockchain environment that can handle dApps, smart contracts and asset creation. However, there are a few key differences. EOS, for example, has focused on fast transactions, whereas Cardano’s strength arguably lies in its interoperability. Both have plenty of potential as far as investment goes - so why not consider adding both to your portfolio?
Where can I buy Cardano in 2021?
If you’re looking to buy Cardano then you’ll need to find a platform that lists the token. We normally recommend eToro, as it’s one of the leading exchanges worldwide and is especially accessible for traders new to the crypto scene.
Cardano vs EOS - which is the better investment?
No one can say whether Cardano or EOS will prove to be a better investment - both have price growth predicted over the next year or so. Currently, Cardano is the stronger of the two, but as we all know, the crypto market changes quickly.
Can Cardano topple Ethereum?
Every smart network is touted as an Ethereum Killer at some point - but Cardano is probably the project that is in the best shot as the market stands today. Not only is Cardano’s infrastructure peer reviewed, but ADA is currently the fifth-largest cryptocurrency by market cap.