Cardano (ADA) has made some headway recently and is starting to show some signs of life. While the network still has a long way to go before it hits the $4 mark, it is gaining momentum.
Cardano has stated its intention to become a global financial operating system. This strategy is reminiscent of the disruptive innovation strategy that many startups have adopted.
But it is unique in that it targets the low-end market and developing nations while most blockchains focus on Wall Street and large institutional investors. As such, it has the potential to disrupt Ethereum’s position as the standard blockchain for smart contracts.
Cardano Abilities
One of the keys to Cardano’s future is its ability to implement smart contracts. Blockchains without smart contracts serve as a database for storing data and transactions, while smart contracts allow programmable applications to be built on top of the network.
These include DeFi applications, non-federated tokens, and other decentralized applications. With its innovative features, Cardano can help developers build decentralized applications for their communities.
With a market cap of $12 billion and a total market cap of $160 billion, it is difficult to see how Cardano can overtake Ethereum without a big market cap expansion.
However, this would mean that it would need to experience a bull run of five to six times to surpass the $734 billion market cap of Ethereum.
Read more about Is Cardano (ADA) A Shitcoin.
Cardano Hard Fork
After the Vasil hard fork, Cardano is on the rise in terms of its ecosystem growth and ADA token value. If this happens, it could even surpass Ethereum in terms of market cap and ecosystem value.
While it isn’t quite as renowned as Ethereum, it is an alternative that can keep its value for a longer period of time.
The two blockchains share many characteristics. However, the main difference is in the consensus algorithm.
Ethereum’s consensus algorithm is based on proof of work. However, Cardano’s proof-of-stake Ouroboros consensus algorithm is more flexible and efficient than Ethereum’s proof-of-work algorithm.
Final thoughts
While Cardano’s price growth is a bit slower than Ethereum’s, it represents a top-tier altcoin with years of development behind it.
The technology behind this project is cutting-edge and has the potential for fantastic gains. With the promise of smart contracts, the currency has a lot to offer.
