Cardano beats Ethereum in a three key ways. It is why it is one of the most popular blockchain networks, with its ADA token sitting among the top 10 cryptocurrencies globally in terms of market capitalization.
The token has maintained its status among the top 10 since it was launched in 2015. Cardano was the sixth-largest cryptocurrency as of writing, with a value of $2.10 and a market cap of around $67 billion. However, the crypto market is very volatile, and this can change quickly.
Could Cardano replace Ethereum?
Just like Ethereum, Cardano is a smart contract protocol. Many Cardano fans believe that the platform will soon displace Ethereum because of three main reasons:
1. Ethereum is very Expensive
If you have been in the crypto market for a while, you may have come across tweets of articles complaining about the high gas fees on the Ethereum platform. However, Ethereum is highly preferred by institutional clients who want to launch various blockchain-based products. Besides, Ethereum has become highly renowned with NFTs.
As much as this is the case, Ethereum is very costly to use, which may deter small-scale DeFi developers who prefer Cardano because of the lower fees. The Eth-2 upgrade is expected to solve this issue, but the layer 2 solution is still a long way off.
2. Transaction lags
The other main issue with Ethereum is transaction lags. Users have to wait for long periods for their transactions to be processed because the platform lacks basic scalability features. Ethereum recently launched the Berlin Hard Fork scalability solution as a step towards dealing with scalability issues. However, the upgrade will not deliver a transaction breakthrough anytime soon, and Ethereum is still lagging behind its competitors in this regard.
Cardano makes for the most formidable competitor of Ethereum because of the lightweight design on the issue of scalability and speed. The platform has recorded a processing capacity of around 257 transactions per second. In this respect, Cardano even beats other high-speed networks such as XRP.
3. Still in the works
Ethereum has been around for a long time, making it easy to assess its potential. On the other hand, the Cardano network has only been around as a proof of stake blockchain since last year when the Shelley mainnet went live. Caradno’s superior technology from the outset leaves room for advancements that may push its dominance in the crypto market.
Secondly, Cardano set out from the outset to solve the issues that its predecessors are currently still tackling, which will help it achieve a full-proof future.
Because of the advances expected from the team at Cardano, its supporters believe that once it is fully deployed, the token will topple the current leading cryptocurrencies.
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