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ETH vs. ADA: Is Cardano or Ethereum a Better Investment in 2024?

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Markets got a big spike in Ethereum price this week on crypto exchanges. What’s behind it and what factors can investors take into consideration to determine whether Ether or its friend Cardano is the better buy?

Ethereum has a birthday coming up on July 30. It was launched in 2015 to create a “world computer” with the same Web3 blockchain properties as Bitcoin has for storing cash and making payments.

Cardano was launched on September 23, 2017 by initial coin offering (ICO) and founded by an Ethereum co-founder, Charles Hoskinson. Today it’s the 10th largest cryptocurrency by market capitalization.

Ethereum Market Cap (May 22): $451.8 billion
Cardano Market Cap (May 22): $17.2 billion

Certain differences between the two cryptocurrencies are an advantage for one or the other and a good reason to be bullish or bearish for ETH or ADA tokens.

But some of the two networks’ differences are tradeoffs that are more complex to evaluate as yielding an advantage for either crypto. Here are 7 key factors at play in the future Ethereum price against Cardano:

1. ETH vs. ADA – Technical Analysis (a tie)

Ethereum price is nearly all the way back to its ATH (all time high) after spiking this week on Ethereum spot ETF buzz. Cardano has a long way to go. That might actually be more bullish for ADA, with more upside left in its price.

The recent Ethereum ETF approval will shake up the entire meta for investing in Ether. If bulls take the price past $4,000, another 12.5% increase would pump ETH to $4,500— within striking range of the previous Ethereum ATH of $4,721 in Nov. 2021.

Forbes recently mentioned an Ethereum price prediction of $5,000 by the end of 2024. Bitcoin ETF issuer VanEck predicts $11,800 by 2030. An even more bullish outlook forecasts $10,000 ETH by the end of the year.

Over the short term, Cardano technical indicators and moving averages over the weekly span recommended “Sell” on Thursday. Meanwhile, Ethereum technical indicators for the seven-day span recommended “Strong Buy,” according to data from Investing.com.

2. Ether Spot ETF – Regulatory Analysis (bullish ETH)

There’s no denying it. Charles Hoskinson would certainly agree: U.S. regulators seem to favor Bitcoin and Ethereum over Cardano and other DeFi networks.

The SEC said okay to Ethereum futures ETFs in October, revealing it didn’t seem to think of Ether as an unregistered security. However, the U.S. regulator has classified Cardano and other cryptocurrencies as unregistered securities in lawsuits against multiple blockchain companies, while ignoring Bitcoin and Ether.

As Fortune Magazine reported on May 1, “Furthermore, despite launching a number of lawsuits against crypto companies since April 2023, the agency has never named Ether to be a security in its complaints.”

The SEC lawsuit against Ripple has taken years (since Dec. 2020) and still has not yet been resolved. It is costly and leaves the future unsure for the currencies under the government’s crosshairs.

Markets abhor uncertainty.

It may not be fair, but it’s a bullish factor for ETH and bearish for ADA.

3. ADA vs. ETH – Fundamental Analysis (a wash)

Fundamental analysis is the preferred method of investors who are not total degenerates. Instead of chart technical analysis or meme currency voodoo economics, the fundamentalist looks at an investment prospect and asks what would “The Intelligent Investor” author Benjamin Graham do if he were here?

Graham says:

“The intelligent investor is a realist who sells to optimists and buys from pessimists. In the short run, the market is a voting machine but in the long run, it is a weighing machine.”

If a business’s expected future revenues discounted to the present day exceed its current market value, then it may be a good investment. If they match or fall short of the business’s market cap, then it may be a poor investment.

ADA: $263.8 million TVL (3% annual reward rate + 121% annual growth rate) / Market Cap: $16.4 Billion
ETH
$64.9 Billion TVL (5.5% annual reward rate + 145% annual growth rate) / Market Cap: $453 Billion

Going by the data above without any further context, it appears Cardano would be the winner, because its inflows make up a much smaller portion of its market cap than Ethereum (0.019 to 0.22), but only if we expect it to grow at the same rate as Ethereum in the future.

The lopsided institutional adoption between the two will make that difficult for Cardano unless it finds a use case, a feature/benefit, and a narrative that shakes up the retail Internet markets for cryptocurrency.

4. Cardano vs. Ethereum – Gas Fees (cat’s game)

There are lower and more predictable fees on Cardano, but higher fees on Ethereum are also a feature, not necessarily a bug. They make it more expensive to misuse the network for cybercrime that doesn’t pay, so it’s more secure. Big institutions like that.

That’s one reason why the industry leader, Bitcoin’s slow, expensive network, with a low transaction bandwidth holds its capital so well. In many ways these built-in costs qualify participants better than Know Your Customer policies and automatically and without discriminating on any basis other than ability and willingness to pay the network’s fees.

Still for newcomers, enterpreneurs, startups, and investors starting out with a smaller cash pile, smart contract blockchain networks with lower fees like Cardano have an advantage. Transaction fees on both networks are highly variable and spike during periods of high network use.

5. Ease Of Use – Cardano (another tie)

Some people in Web3 feel Ethereum has an ease-of-use problem. It’s become too overgrown with complicated, byzantine layers on top of layers, creating a steeper learning curve and potential security threats.

Blockchain advocate Daniel Cawrey wrote in a recent opinion article on Blockworks:

“Ethereum is becoming a multilayered lasagna-like system whereby complexity and fees are pushing people to the margins, causing interoperability and security concerns.”

While true, much like Ethereum’s higher transactions fees— the complexity of Ethereum may be a reason to be bullish for ETH. It could simply be proof of the network’s success. As Cawrey acknowledges in the piece, the network is beginning to achieve its “world computer” concept.

Any computer architecture expert would be hard-pressed to explain how a Turing-complete global computer that anyone can use on a peer-to-peer network would become anything but a flying spaghetti monster of complexity.

6. Ether vs. Cardano Whales (bullish ADA)

A massive 15,000 ETH whale deposit to Kraken on May 18 spotted by Whale Alert suggested a bear run on Ether by whales could be incoming, but after the SEC approved the spot Ethereum ETF a surge in whale-sized transactions has been net positive for the network, according to IntoTheBlock data.

Meanwhile, Cardano whales have been extremely bullish for ADA in May. They boosted holdings in Cardano tokens by 11% in a month. Whales tend to be smart money with some of the most advanced analytics and market outlooks to know what they’re doing, so that’s positively bullish for Cardano.

https://x.com/intotheblock/status/1790774801277042863

7. Ethereum vs. Cardano Memes (bullish ETH)

Meme coins are a definite advantage for Ethereum. While Cardano does have meme coins, none of them are notable and they have not topped the market cap charts like Ethereum’s SHIB, PEPE, and FLOKI.

Cardano has succeeded in making a simpler, lower-fee Ethereum, but crypto markets tend to reward projects that leaven their technology with some meme karma. Maybe an Orange Pill Moon Boys NFT collection or something with a dog on it would do the trick.

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Cryptocurrency

BTC Tanks to $61K as Long-Awaited Mt. Gox Repayments to Begin in July

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On June 24, the Mt. Gox rehabilitation trustee issued a letter regarding repayments to creditors commencing at the beginning of July 2024.

“The Rehabilitation Trustee has been preparing to make repayments in Bitcoin and Bitcoin Cash under the Rehabilitation Plan,” it stated.

The move comes after extensive preparations to ensure safe and compliant repayments, it added.

Mt. Gox Repayments

Additionally, the process involved technical safeguards, adherence to various countries’ financial regulations, and discussions with cryptocurrency exchanges, according to the letter.

Repayments will be made through trading platforms, starting with those that have completed the necessary information exchange and confirmation process with the Trustee. Creditors were advised to wait patiently as the repayments in BTC and BCH were processed.

Mt. Gox became insolvent after a hack that led to the theft of 850,000 BTC, valued at $460 million at the time of the incident in 2014.

Some of the larger creditors of the bankrupt crypto exchange chose a payment option that would allow them to receive a lump sum of their recovery payout in BTC rather than fiat.

Additionally, on-chain analysts identified several large BTC movements associated with Mt. Gox in late May. They cautioned that this could put selling pressure on Bitcoin markets.

This latest news has already sparked concern over large amounts of Bitcoin entering markets that have already turned bearish.

Bitcoin pioneer Kyle Chassé echoed the concern, exclaiming, “F*cking $9 billion worth of Bitcoin repayments.”

Analyst Don Alt advised caution when trading with further losses expected.

“Gonna be interesting to see how price reacts to the Mt. Gox announcement. Bulls need to show significant strength to reverse this slow bleed. If they can’t, the bottom of the range may just fall out.”

Impact on BTC

In addition to this sell-side pressure, Bitcoin miners have been offloading the asset. Miners sold over 30,000 BTC worth around $2 billion in June, “the highest amount this year, dropping reserves to a 14-year low,” said analyst ‘Carl B Menger.’

“BTC is now approaching the critical level where many will give up this cycle,” said analyst ‘Titan of Crypto’ in a post on X on June 24.

Bitcoin prices dumped to $61,000 on the news, accelerating losses over the past 24 hours, which are now 4.6%.

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Ethereum Price Analysis: Is $3K Imminent for ETH Following 5% Daily Dump

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The Ethereum price has been dropping since getting rejected from the $4,000 resistance level. In the past 24 hours, the selling intensified and the bears are seemingly targeting the important resistance level at $3,000.

Technical Analysis

By TradingRage

The Daily Chart

The daily chart shows that the price has dropped below the $3,600 level and is rapidly approaching the $3,000 support zone. The 200-day moving average is also around the $3,000 mark, further boosting the importance of this level.

The Relative Strength Index has dropped below 50%, indicating that the momentum has shifted bearish. If the $3,000 level breaks down, things can get ugly for ETH, as a further drop toward $2,800 and even the $2,200 zone could be expected.

eth_price_chart_2406241
Source: TradingView

The 4-Hour Chart

Looking at the 4-hour timeframe, the price has been making lower highs and lows since the rejection from the $4,000 resistance level.

At the moment, the cryptocurrency is approaching a long-term bullish trendline. A break below it would probably result in a bearish phase in the coming weeks.

Yet, the RSI has dropped below %30, making ETH oversold on the 4-hour chart. Therefore, a rebound from the trendline or the $3,000 level is still possible.

eth_price_chart_2406242
Source: TradingView

Sentiment Analysis

By TradingRage

Funding Rates

While the Ethereum price has been trending down after failing to break above the $4,000 level and rally toward its all-time high, the futures market sentiment is weakening.

This chart presents the Ethereum funding rate metric. It measures whether the buyers or the sellers are more aggressively executing their orders. Positive funding rates indicate bullish sentiment, while negative ones are associated with bearish sentiment.

Currently, the funding rates are declining as the price is trending down. While this shows the sentiment is gradually shifting, it might not be bad for the price. This is because of the probability of a long liquidation cascade, or the magnitude of a possible one, as the futures market is cooling down.

eth_funding_rate_chart_2404241
Source: CryptoQuant
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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Cryptocurrency

BTC Price Analysis: Here’s the First Critical Support if Bitcoin Drops Below $60K

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Bitcoin’s price has dropped rapidly over the last few days after failing to keep above the $70K level. The market is currently approaching a fundamental level.

Bitcoin Price Analysis: Technicals

By TradingRage

The Daily Chart

As the daily timeframe demonstrates, the BTC price has been trending downward since the beginning of June following a rejection from the $72K zone. The price is approaching the pivotal $60K support level.

With the 200-day moving average around the $58K mark, a break below $60K could lead to a retest of the moving average. Overall, the market’s mid-term fate relies on the price’s reaction to these support elements.

btc_price_chart_2406241
Source: TradingView

The 4-Hour Chart

On the 4-hour chart, the large falling wedge pattern has finally been broken to the downside, and the price is aggressively approaching the $60K support zone. The Relative Strength Index has also declined rapidly and is showing values below 30% at the moment.

Therefore, BTC is currently oversold on the 4-hour timeframe, and a short-term rebound or consolidation at the $60K level is probable.

Yet, if the market breaks lower, the $58K support zone would be the next potential target.

btc_price_chart_2406242
Source: TradingView

On-Chain Analysis

By TradingRage

Bitcoin Short-Term Holder SOPR

While Bitcoin’s price has decreased recently, many market participants are seeing their unrealized profits shrink. Meanwhile, some holders have realized their profits and exited the market before going into a loss.

This chart presents the Bitcoin Short-Term Holder SOPR, demonstrating the profit and loss ratio. Values above one indicate that investors are selling at a profit, while values below one point to losses.

The STH SOPR is trending down, as is the BTC price. The short-term holders are on the verge of realizing losses, which would happen if the market drops below $60K.

Yet, this also occurs at the lows during a bull market. So, if we consider the bull market not over yet, the low could be very close.

btc_short_term_sopr_chart_2406241
Source: CryptoQuant
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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