Analysts bullish on Avalanche and Cardano as these networks overtake Ethereum


  • Cardano benefits from its reputation as a “green cryptocurrency,” and the launch of its smart contract functionality.
  • DeFi applications line up for $180 million Avalanche Rush, and the network shifts focus to the metaverse. 
  • Total Github commits by Avalanche increased by more than 700% over the past year, the network dominates layer-one solutions.

Avalanche has shifted focus from DeFi to building the metaverse, and Cardano is now ready to host smart contract applications. Cardano is set to capture a large share of the DeFi ecosystem. 

Partnerships and upgrades in Avalanche and Cardano trigger price rally

The Avalanche Foundation made a strategic investment in NFT ecosystem Kalao to leverage its marketplace and power the metaverse experience. Kalao combines NFT with virtual reality technologies and implements it in real-world use cases. 

NFTs are a relatively new trend in the cryptocurrency ecosystem, and Avalanche is jumping in on the trend with Kalao. 

The blockchain network’s native token AVAX has posted nearly 40% gains over the past week. AVAX has offered the highest risk-adjusted returns in the past 40 days, followed by Tezos (XTZ) and Cardano (ADA). 

Risk-adjusted return over the past 30 days.

Risk-adjusted return over the past 30 days.

Currently, Avalanche network is the only consensus that can possibly scale active validators in the network and offer throughput at the same level as payment giant Visa. Fast and low-cost transactions coupled with $180 million incentives through the Avalanche Rush program are attracting more decentralized applications to the network. 

Alongside rising popularity in the crypto community, Avalanche developers made 12,575 commits so far in 2020-21, a growth of 709% over last year’s Github commits. Github commits have emerged as a key indicator of a network’s relevance and level of interest in the development community. 

Git commits: Top 5 projects.

Git commits: Top 5 projects.

Cardano, a leading altcoin and Ethereum-rival network, made 702 commits, making it 555% more active than the average protocol. With the arrival of smart contract functionality on its mainnet, Cardano is set to resume its upward climb.

Cardano is different from Ethereum in that it prides itself on one of the most democratic distributions. This ensures that Venture capitalists and influencers don’t control a large share of the altcoin’s distribution. 

A pseudonymous Cardano proponent, @TheADAApe, shared statistics and insights on the altcoin’s decentralization and democratic distribution against other projects in the ecosystem. 

Cardano’s reputation as the “Green Cryptocurrency” is another factor leading to the overall rise in on-chain activity. The altcoin has posted over 10% losses over the past week, and FXStreet analysts consider a drop below $2.20 would be catastrophic to ADA rally. 

The uncertainty around the deployment of smart contracts on the blockchain network led to the drop in the altcoin’s price since the Alonzo hard fork. With enhanced capability and upgrades, ADA price is expected to increase in the long term. 

@Pentosh1, a cryptocurrency analyst and trader, argues that Cardano’s price is too high and that a bearish retest is likely. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Dogecoin price heads south toward $0.10, DOGE bulls show little opposition

Dogecoin price action points to a continuation of the downside pressure it has experienced over the last month. Little supportive price action exists as bulls continue to disappear and fade away.

More Dogecoin news

Cardano bulls bleed as they try to catch a falling knife

Cardano price is currently trading inside the Cloud within the Ichimoku Kinko Hyo system. This is because the Cloud represents an area of volatility and indecision, conditions that aptly describe the current condition of Cardano.

More Cardano news

XRP price in free fall below $1.00

XRP price continues to show extreme weakness as bears continue to drive bulls into very near capitulation levels. The current Ichimoku Kinko Hyo chart for XRP is the most bearish chart XRP has seen since May 2021.

More Ripple news

Alts rebound while BTC tends to its wounds

BTC closes above the August 1 swing high at $42,599, indicating the end of descent for now. ETH shows signs of life after a close above $3,011 support floor. XRP needs to climb above the $1.01 demand barrier to enter the safe zone.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP