Traders will be keeping a close eye on Cardano (ADA) over the upcoming months to see whether it can surpass the market capitalization of Ethereum (ETH), which is now in the process of merging from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
Cardano and Ethereum are often compared to one another as a result of the fact that their respective networks provide services that are comparable. Both blockchains provide programmers with access to common functionalities, including the execution of user-defined programming logic (smart contracts) and building programs (decentralized applications).
When utilizing CoinGecko’s compare cryptocurrencies tool, which lets users calculate the price of one cryptocurrency asset with the market cap of another, Cardano would need to rise 9.25 times more to have the same market size as Ethereum. This represents a gain of 823.39% and would see ADA trade at a price of $4.34.
Cardano’s price has increased by 0.7% in the last 24 hours and another 3.5% over the course of the previous week, and it is now trading at $0.470424. After a steep increase in price over the last few days, Ethereum is now trading at $1,226.03; this is a gain of 3.5% on the day and 16% over the past week.
Given that Cardano’s all-time, which it reached in the last year, is $3.10, a price increase to $4.34 seems unlikely in the near future, especially without Ethereum rising in tandem, which saw an all-time high itself of $4,800 in November 2021.
Cardano upgrade
Cardano has just completed a near-complete reconstruction of its blockchain in order to include smart contracts and enhance other aspects of the ecosystem. The network then made it apparent that it was providing solutions to the decentralized finance (DeFi) business. However, as a result of the collapse of the Terra LUNA ecosystem, the DeFi market went into a tailspin.
Nevertheless, investors expect Cardano will maintain its value in the future, and the rebuild will be to the advantage of the project with its upcoming Vasil hardfork potentially providing an opportunity for a price increase.
The increase in price could take place as the anticipated Vasil hardfork draws near, especially after its recent successful launch on the testnet by the blockchain’s developer Input Output (IOHK).
Although the progress made in attempting to attract capital to the chain may be gradual, the cryptocurrency community at CoinMarketCap predicts the asset to be trading at an average price of $0.88 by the end of July 31, 2022.
Earlier this month, Finbold also reported on a price prediction algorithm that uses an open-source machine learning framework projecting that Cardano would reach the price of $2.90 by September 1, 2022.
Ethereum update to be completed in August
After the significant update to Ethereum was delayed, investors were left with a sour taste in their mouths.
It was anticipated that the so-called Merge would be finished and provide assistance to ETH in its battle against the many rivals who want to usurp its position as the preeminent platform for DeFi and non-fungible token (NFT).
The founder of the project Vitalik Buterin, has indicated that August will be the month in which the update will be finished, and it is possible that the price of ETH could surge towards that date as predicted by the crypto community at CoinMarketCap.
Notably, the token was pressured downward by the adverse mood, and combined with the forced liquidations from the Three Arrows hedge fund, Ethereum fell below $950 at one point.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/cardano-must-rise-above-4-to-match-ethereums-market-cap/