The crypto market is struggling at the moment, and all major cryptos are deep in the red. However, Ethereum (ETH) is one of the hardest hit due to the massive selloff of Ether by ICOs. Ethereum (ETH)’s drastic drop is also compounded by the fact that it has been slow to implement much needed scaling solutions such as Sharding. Ethereum is still a year or two away from realizing a viable scaling solution. With such challenges for Ethereum, could Cardano (ADA) beat Ethereum by market capitalization? Well, going by current market dynamics, the probability of Cardano beating Ethereum (ETH) in the market is quite high. Here’s why.
- The ICO Ethereum selloff
The first reason why Cardano overtake Ethereum is the increased pressure on the price of Ethereum. Unless ICOs stop selling Ethereum (ETH), the downward pressure on Ethereum will sustain for some time. Some estimates put it that if ICOs continue selling at the current rate, Ethereum could test lows of under $50. While this is an extreme possibility, it could hurt the market capitalization of Ethereum by a big deal. Cardano (ADA) on the other hand does not have such issues around it. On this basis alone, it could easily bypass Ethereum by market capitalization.
- Technical superiority
Ethereum (ETH), like Bitcoin (BTC), has a serious scalability problem that is yet to be resolved. This is increasingly reflecting on its price. As mentioned earlier, getting solutions to this problem is taking time, and the markets are getting impatient. This is one problem that Cardano doesn’t have. Cardano is a highly scalable project all thanks to Ouroboros. Ouroboros is Cardano’s scientifically peer-reviewed Proof-of-Stake mining algorithm. This not only makes Cardano efficient but also highly scalable. This head start could Cardano see it gain in adoption for the development of complex applications for real businesses. This could see Cardano (ADA) rise in value, and possibly overtake Ethereum (ETH) by market capitalization. Still, on the technicalities of the project, Ethereum wants to shift from Proof of Work to Proof of Stake. However, this is not an easy process, and might not necessarily be successful. It’s incomparable to Cardano (ADA), which chose POS from the very start and perfected it through lots of scientific research. This could play a huge role in driving up Cardano relative to Ethereum (ETH).
Comparing Cardano (ADA) and Ethereum (ETH) in terms of potential gains, Cardano (ADA) has a good potential to give higher gains. That’s because it is technically superior and is priced way lower than Ethereum (ETH). This aspect to Cardano (ADA) makes it a more attractive buy, and once the bear run eases up, Cardano could easily outpace Ethereum (ETH) in terms of price gains and overtake it by market capitalization.
Going by the above, it is clear that Cardano has a much better future than Ethereum (ETH). Cardano (ADA) could be the Dapps platforms that take blockchain technology to the next level. Its inherent potential is use is huge.