• Cardano has over 2.8 million active users, up 7.3 times since the beginning of 2021. 
  • The valuation of Cardano per monthly active user, as per Grayscale, ADA is nearly 45% cheaper than its rival Ethereum. 
  • Analysts expect Cardano to exhibit greater volatility than Bitcoin and other risk-on assets during market cycles, attracting more traders to ADA. 

Next-generation internet platform Cardano poses tough competition to Ethereum with its smart contract functionality, attracting exciting DeFi projects and applications to its blockchain. 

Third largest cryptocurrency ADA is 45% cheaper than ETH based on user fundamentals

Grayscale, a leader in cryptocurrency asset management, recently published a report on Cardano. The asset management firm has evaluated the Web 3.0 crypto network.

The Cardano network is currently processing over 115,000 transactions per day, up over 13 times since the beginning of 2021. 

The early ecosystem projects on Cardano have attracted several applications to the blockchain. 

A feature of Cardano that differentiates it from top competitors like Ethereum is that the network allows users to send multiple asset types within the same transaction. This feature is expected to attract more decentralized applications projects to the network. 

The altcoin’s transaction count has increased despite the price rise.

ADA price v. transaction count.
ADA price v. transaction count.

The asset management firm valued the altcoin in terms of active users per month and revealed that Cardano is currently nearly 45% cheaper than Ethereum. 

Though the rollout of decentralized applications (dApps) on Cardano mainnet is still in its early stages, there is an ecosystem of projects testing their smart contract capabilities on the Ethereum-killer’s blockchain. 

Besides, Cardano’s monthly active wallet address count exceeds Ethereum, fueling the narrative that ADA is ready to take over the largest altcoin by market capitalization. 

Cardano & Ethereum monthly active addresses.

Cardano & Ethereum monthly active addresses. 

Grayscale analysts expect that ADA would display higher volatility than Bitcoin and most other altcoins in the long term. 

Proponents consider that the rise of use cases and projects on the Cardano network is likely to increase network usage and support value rotation into ADA. 

FXStreet analysts have evaluated the ADA price trend and expect the altcoin to rally past $2.64. Analysts expect a transition in ADA price trend on October 5. 

 

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 Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Three reasons why Aptos price rally could lose steam after 400% gains

Three reasons why Aptos price rally could lose steam after 400% gains

Aptos witnessed a massive spike in its price since December 29, but on-chain analysts and experts suspect the token’s price rally could soon come to an end

More Cryptocurrencies News

Three reasons why Bitcoin price analysis hints at a pullback to this level

Three reasons why Bitcoin price analysis hints at a pullback to this level

Bitcoin price has been on a steady uptrend since January 1 and has shown no signs of stopping so far. However, things are starting to change with January 29’s daily candlestick close and could point to an incoming sell-off.

More Bitcoin News

Solana price might be in a micro uptrend, but here's why traders should practice caution

Solana price might be in a micro uptrend, but here's why traders should practice caution

Solana price is maintaining its presence above the $22 mark that it reclaimed about a week ago, enabling the altcoin to preserve its uptrend.

More Solana News

Cardano Price Prediction: ADA still in an uptrend until this level fails

Cardano Price Prediction: ADA still in an uptrend until this level fails

Cardano price accomplished an impressive 66% rally in January. As the price continues to ascend, there are reasons to consider that a pullback is on the horizon. 

More Cardano News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP