Is Cardano or Ethereum a better investment in 2024?

Markets recorded a huge spike in ethereum price this week on crypto exchanges. What's behind this and what factors can investors take into account to determine if Ether or its friend Cardano is the better buy?

ethereum's birthday is July 30. It was launched in 2015 to create a “world computer” with the same Web3 blockchain properties that bitcoin has for storing cash and making payments.

Cardano was launched on September 23, 2017 via initial coin offering (ICO) and was founded by ethereum co-founder Charles Hoskinson. Today it is the tenth largest cryptocurrency by market capitalization.

ethereum Market Cap (May 22): $451.8 billion
Cardano Market Cap (May 22): 17.2 billion dollars

Certain 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 trade-offs that are more complex to evaluate and create an advantage for either cryptocurrency. Here are 7 key factors at play in the future price of ethereum vs. Cardano:

1. eth vs. ADA – Technical Analysis (one tie)

ethereum price has almost returned to its ATH (all-time high) after skyrocketing this week due to the ethereum spot ETF rumor. Cardano has a long way to go. That might actually be more bullish for ADA, as there is more upside left in its price.

The recent approval of the ethereum ETF will revolutionize the entire goal of investing in Ether. If the bulls push the price above $4000, another 12.5% ​​rise would lift eth to $4500, within the striking range of the previous ethereum ATH of $4721 in November 2021.

Forbes ethereum-price-prediction/” data-wpel-link=”external” target=”_blank”>recently mentioned an ethereum price prediction of $5,000 by the end of 2024. bitcoin ETF Issuer, VanEck ethereum-price-prediction-118k-by-2030/ethereum-price-prediction-118k-by-2030.pdf” data-wpel-link=”external” target=”_blank”>predict $11,800 by 2030. An even more bullish outlook predicts $10,000 eth by the end of the year.

In the short term, Cardano technical indicators and weekly moving averages recommended “Sell” on Thursday. Meanwhile, ethereum technical indicators for the seven-day span recommended a “strong buy,” according to data from Investing.com.

2. Ether Spot ETF – Regulatory Analysis (eth Bullish)

It cannot be denied. Charles Hoskinson would certainly agree: US regulators seem to favor bitcoin and ethereum over Cardano and other DeFi networks.

The SEC gave the go-ahead to ethereum futures ETFs in October, revealing that it did not appear to think of Ether as an unregistered security. However, the US regulator has classified Cardano and other cryptocurrencies as unregistered securities in lawsuits against multiple blockchain companies, ignoring bitcoin and Ether.

Like Fortune magazine crypto/2024/05/01/sec-ethereum-consensys-hinman-gensler-security/” data-wpel-link=”external” target=”_blank”>reported in May 1: “Furthermore, despite having filed a series of lawsuits against crypto companies since April 2023, the agency has never named Ether as a security in its complaints.”

The SEC lawsuit against Ripple has been going on for years (since December 2020) and has not yet been resolved. It is costly and leaves the future of the currencies under the government's sights uncertain.

Markets abhor uncertainty.

It 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 degenerate. Instead of technical chart analysis or meme currency voodoo economics, the fundamentalist discusses an investment perspective and asks what “The Intelligent Investor” author Benjamin Graham would 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 today exceed its current market value, then it may be a good investment. If they match or fall short of the company's market capitalization, then it may be a bad investment.

ADA: $263.8 million TVL (3% annual reward rate + 121% annual growth rate) / Market cover: $16.4 billion
eth ethereum” data-wpel-link=”external” target=”_blank”>$64.9 billion TVL (ethereum-staking-rewards/” data-wpel-link=”external” target=”_blank”>5.5% annual reward rate + 145% annual growth rate) / Market cover: ethereum” data-wpel-link=”external” target=”_blank”>$453 billion

Based on the data above without any additional context, it seems like Cardano would be the winner, because its inflows make up 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 time. rate like ethereum in the future.

Uneven institutional adoption between the two will make this difficult for Cardano unless it finds a use case, feature/benefit, and narrative that shakes up the retail cryptocurrency markets on the internet.

4. Cardano vs. ethereum – Gas Rates (The 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 non-paying cybercrimes, making it safer. Big institutions like that.

That's one of the reasons why the industry leader, bitcoin's slow and expensive network with low transaction bandwidth, holds its capital so well. In many ways, these built-in costs qualify participants better than Know Your Customer policies do, 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 starting with a smaller amount of cash, smart contract blockchain networks with lower fees like Cardano have an advantage. Transaction fees on both networks are highly variable and peak during periods of high network usage.

5. Ease of use: Cardano (another tie)

Some people on Web3 feel that ethereum has a usability problem. It is overly covered in complicated and byzantine layers upon layers, creating a steeper learning curve and potential security threats.

Blockchain advocate Daniel Cawrey wrote in a recent op-ed about Blockworks:

“ethereum is becoming a lasagna-like, multi-layered system where complexity and fees are pushing people to the sidelines, causing interoperability and security issues.”

While true, like ethereum's higher transaction fees, ethereum's complexity may be a reason to be bullish for eth. It could simply be proof of the network's success. As Cawrey acknowledges in the article, the web is beginning to realize its “world computer” concept.

Any computer architecture expert would have a hard time explaining it. ethereum.stackexchange.com/questions/2464/what-does-it-mean-that-ethereum-is-turing-complete” data-wpel-link=”external” target=”_blank”>As a The Turing-complete 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 (bullish ADA)

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 spot ETF, a surge ensued. in whale-sized transactions. ethereum-whales-come-alive-are-they-buying-or-selling/” data-wpel-link=”external” target=”_blank”>has been net positive for the network, according to data from IntoTheBlock.

Meanwhile, Cardano whales were extremely bullish on ADA in May. Cardano token holdings increased by 11% in one month. Whales tend to be smart people with some of the most advanced market analysis and insights to know what they are doing, which 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 if you have meme coins, none of them are notable and have not topped market cap charts like ethereum's SHIB, PEPE, and FLOKI.

Cardano has managed to create a simpler ethereum with lower fees, but crypto markets tend to reward projects that ferment their technology with some meme karma. Maybe an nft collection of Orange Pill Moon Boys or something with a dog would do the trick.

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