Cardano (ADA) Vs. Ethereum (ETH): Which is Better to Invest?

Cardano (ADA) Vs. Ethereum (ETH): Which is Better to Invest?
  • Crypto investors are eager to know which is a better investment – ADA Vs ETH.
  • Cardano can support 1 million transactions per second. 
  • Ethereum relies on an early Proof-of-Work (PoW) consensus protocol.

Cardano (ADA) and Ethereum (ETH) are two smart contract platforms well-known for their unique blockchain technology and features. Moreover, it is necessary to understand the key difference between the two digital assets. 

Cardano’s price has surged from $0.034 in January 2020 to $1.21 today. At the same time, Ethereum has increased from $138.7073 to $2,171.66 right now, according to CoinMarketCap

Difference Between Cardano Vs Ethereum

Crypto investors are eager to know which is a better investment today, Cardano or Ethereum. Now let us look into the difference between Cardano and Ethereum.

Quick Background on Cardano Vs Ethereum

In 2015, the Cardano was developed with an objective to provide a platform that enables sending and receiving of native crypto ADA. However, the platform also facilitates smart contracts and also distributed app developments. Moreover, Cardano was actually created by ex-Ethereum co-founder Charles Hoskinson. In addition, Cardano has many notable advancements on the Ethereum blockchain

More so, the Cardano is the world’s first peer-reviewed digital currency which has been scrutinized by many prominent academic institutions. Added to this, it also has a unique two-layer architecture, one for handling general transactions and the other deals with smart contracts. 

Even more, Ethereum is considerably the second most prominent cryptocurrency behind Bitcoin. Ethereum blockchain offers a simple payment system and presents far more functionality than the real cryptocurrencies and their respective blockchains. In July 2015, Ethereum was driven by its native token ETH. However, it also enables the exchange of smart contracts which intends to streamline the transfer of asset ownership and trust agreement. Furthermore, the ETH platform also enables DApps to be developed and run without any influence from a third party. 

Scalability of Cardano (ADA) Vs Ethereum (ETH)

Cardano can support 1 million transactions per second  (tps). The enhancement of over 1 million tps is made possible through the recent release of the development of the layer 2 solution “Hydra” by the development team.

In comparison, Ethereum lags behind Cardano. ETH blockchain could handle 15-20 transactions per second in its current state. In addition, the ETH 2.0 update might provide users with 100,000 tps. 

Consensus of Cardano (ADA) Vs Ethereum (ETH)

Ouroboros is the new consensus utilized by Cardano. Moreover, Ouroboros chain-related PoS protocol which enables the lightning-fast transaction. In order to accomplish this task, the system will rely on randomly selected leaders for block approval. At the start of each epoch, the network will select these nodes. Notably, Epoch will work as a snapshot of the blockchain from past information.

In addition, utilizing the Epochs will eliminate the need for nodes to identify the entire transaction chain when approving the network’s state. In line with this, the key to this strategy is to make sure that the epoch starts from a block sufficiently deep in the chain of transactions.

On the other hand, Ethereum relies on an early Proof-of-Work (PoW) consensus protocol in order to validate the state of the network. More so, the protocol collaborates with the Ethash algorithm. At the time of launch, this was a big deal because it offers more scalability than Bitcoin and could reduce the use of ASIC (application-specific integrated circuit) mining rigs.

Furthermore, In the coming months, Ethereum will end its migration from a PoW network over to a Proof-of-Stake (PoS) project. All-in-all, the migration will improve Ethereum’s scalability and decrease its carbon footprint. Additionally, it will allow users to stake their ETH and gain rewards.

Should you invest in Cardano or Ethereum?

Crypto investors are in confusion about whether to invest in Cardano or Ethereum in 2021. However, there is no reason to select one over the other, but for the sake of comparing ADA vs ETH, there are some key metrics and indicators that could be utilized to differ from the two with regards to investment chances. 

Furthermore, cryptocurrency price forecasts are usually based on price prediction and technical analysis of historic price movement. More so, it is possible to see the predictions made by few of the leading platforms in the industry. Finally, expert insights could be a great way of garnering further data and gauging mainstream appetite for a particular digital currency. 

Future Price Predictions of Cardano Vs Ethereum

Let us look into the future price of Cardano and Ethereum using the price chart shown below.

ADA/USDT Price Chart (Source: TradingView)

The chart shows that ADA has been on an upward trend in the past month. If this trend continues, ADA may run with the bulls and break the $1.72 resistance level. On the contrary, if investors oppose cryptocurrency, the price of ADA may fall to nearly $1, which is a bearish signal.

ETH/USDT Price Chart (Source: TradingView)

The chart shows that Etherum has been on an upward trend in the past month. If this trend continues, ETH may run with the bulls and break the $3,430 resistance level. On the contrary, if investors oppose cryptocurrency, the price of ETH may fall to nearly $1,714, which is a bearish signal.

Notably, the Relative Strength Index (RSI) remains at 56.3. This shows that ETH’s price is in a neither overbought nor oversold state. Notably, the Relative Strength Index (RSI) remains at 48.7. This shows that ADA’s price is in a neither overbought nor oversold state. 

Conclusion

Do you think Cardano (ADA) is a better investment than Ethereum (ETH)?

It is hard to choose between Cardano Vs Ethereum as an investment potential. While Ethereum is far more established with a much greater price, history shows that it is immune to sudden price decreases. Moreover, whether you select to invest in Cardano or to purchase Ethereum in 2021, it is necessary to manage users’ expectations.

Both cryptocurrencies will experience sudden, sustained price dumps and the crypto market is volatile, there is no guarantee this will last. Finally, you are responsible for your investment. What kind of investor do you like to be? Which technology excites you more? And which is presently the most undervalued? Find out the answer to that question, you will definitely know if ADA is a better investment than ETH

FAQ

Cardano vs Ethereum – Which is the better investment?

Both Cardano and Ethereum enhance great investment chances in 2021. Analysts vary on exact price movement, however, most agree that Cardano (ADA) and Ethereum (ETH) will appreciate over the years.

How to choose between ADA vs ETH?

Many crypto investors start by comparing cryptocurrencies to decide which one is best for their portfolio objectives. However, comparing ADA vs ETH risks overlooking one for the other, when in actual fact they both offer plenty of opportunity as part of a huge portfolio.

Where can I buy Cardano in 2021?

Cardano is regularly amongst the top digital assets in terms of market capitalization. ADA can be bought on crypto exchanges such as Binance, OKEx, CoinTiger, Upbit, and ZBG.

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Cryptocurrency and blockchain tech interest has enticed Carolyna to write for NewsCrypto. She made her personal mission to help non-crypto geeks to understand the technology with ease.