The crypto world has grown dramatically in size since it came to be just over a decade ago. This makes it slightly more difficult to invest in, as there are so many different types of cryptocurrency to choose from.
Thankfully, we can help if you’re trying to get into the crypto space, as we’ll be comparing two different coins with one another so that you can figure out which currency will be the best to invest in. So dive into the Cardano vs Ethereum debate below.
History
When comparing any cryptocurrency, it’s always a good idea to find out more about the company or project that you are planning to invest in, and how its protocol works. This will give you a good indication as to how it has performed in the past and how it may perform in the future.
Ethereum (ETH)
The Ethereum blockchain has a large number of founders, but Vitalik Buterin was the one to publish the whitepaper for the project back in November 2013. The other founders of the Ethereum network include Gavin Wood, Amir Chetrit, Anthony Di Lorio, Charles Hoskinson, Joseph Lubin, Jeffrey Wilcke, and Mihai Alisie.
The Ethereum network gained traction back in 2014 when the blockchain was exposed to the public eye at a Bitcoin conference. ETH coins were available for purchase at this time; however, the blockchain network only went live on July 30, 2015.
This meant consumers had to wait for the blockchain to launch before they could make use of their ETH and validate transactions. With the blockchain running, and very successfully, Ethereum has become one of the most popular companies in the crypto world.
Cardano (ADA)
The Cardano network began development in 2015 but only launched in 2017. Charles Hoskinson, who formerly acted as a co-founder of the Ethereum network, is the founder of Cardano. Hoskinson left Ethereum in order to co-found the blockchain engineering company called IOHK.
The main purpose of IOHK is to continue developing the platform, as Cardano aims to eventually support the use of smart contracts.
What It Does, And Why It Was Created
Before you invest in any type of cryptocurrency, it will always be beneficial to understand why it was created and what it does. This will help you figure out whether investing in a certain blockchain platform will be a good idea or not.
Ethereum (ETH)
Ethereum’s main founder, Vitalik Buterin, stated that the reason he created the blockchain platform was to disempower centralized organizations like banks and governments. It currently operates using a proof-of-work consensus mechanism, but it is due to switch to a proof-of-stake system (PoS protocol).
He was able to achieve this by creating Ethereum with his co-founders, as it is a decentralized global platform that can be used as a payment system. Some of the platform’s other uses include its ability to store data and run decentralized apps.
Ethereum achieves all of this by establishing a peer-to-peer network that can execute and verify application code known as smart contracts.
Cardano (ADA)
Cardano is yet another open-source, public blockchain platform, and it was created in order to solve some of the scaling problems that Bitcoin, Ethereum, and other early-generation cryptocurrencies have.
Cardano is soon set to support the use of a smart contract system, which will allow contracts to execute their own terms or agreements. However, this part of the platform is still in development and is not widely available for use just yet.
Price History
Before you move your money into any investment, and decide which is best for you in terms of Cardano vs Ethereum, it will be beneficial to look at the price history. This can tell you how stable a digital currency has been in the past and how it might fare in the future.
Ethereum (ETH)
Back in August 2014, when Ethereum launched its ETH token, one coin was worth $0.31. However, it wouldn’t take long for the coin to surge in value, as by early 2016, the coin had reached a peak of $13.
When the cryptocurrency industry really began to boom at the beginning of 2018, ETH reached its first major milestone, as one coin was worth just over $1,000.
ETH would then experience a steady decline for the next few years until May 2021, when the value of the coin would reach an impressive peak of $4,038.
ETH would once again dip in value in the months after this but would reach its ultimate peak in November 2021, when one coin would be worth $4,701.
By 2022, the cryptocurrency industry had started to crash, and the ETH coin followed suit, which is why in November 2022, one coin is now worth $1,174.
Cardano (ADA)
When Cardano’s ADA tokens first went on sale in 2017, one token cost $0.02. It increased in value to $1.31 in only 96 days as the rest of the cryptocurrency industry experienced a boom.
Unfortunately, this wouldn’t last all that long, as the cryptocurrency industry would experience a serious decline in 2018. This saw the value of one ADA token plummet all the way back to $0.02.
In May 2021, the rest of the crypto industry spiked again, which led ADA tokens to be valued at $2.46. ADA tokens would reach their peak value in September 2021, as one coin was worth $3.10 at the time.
In 2022, Cardano and many other cryptocurrencies, once again, plummeted in value. This is why one ADA token is only worth $0.30 in November 2022.
Market Cap
Market capitalization is a factor you should always consider when investing in cryptocurrency, as it can help you determine the total value of a digital currency.
Ethereum (ETH)
Ethereum and its ADA tokens arrived on the scene relatively soon after Bitcoin. This is why Ethereum has the second highest market cap of any digital asset, as its market cap is currently set at $143.249B.
Cardano (ADA)
While Cardano is still relatively new, it has gained a lot of traction in its short tenure. This is why with its market cap of $10.489B, Cardano appears as the cryptocurrency with the 9th highest market cap.
Similarities
The main similarity between these cryptocurrencies is that they share a founder in Charles Hoskinson. Both Cardano and Ethereum are used for peer-to-peer transactions and can also be used in place of fiat currencies.
Cardano and Ethereum’s core algorithms are also both used to validate transactions and generate blocks, as is the case with many other blockchain networks.
Differences
One of the main differences between these two cryptocurrencies is that Ethereum tokens are far more valuable. This causes people to use the tokens differently, as many people invest in ETH tokens and then hold onto them.
Cardano tokens, on the other hand, are used to pay transaction fees and are staked to help maintain the stability and security of the blockchain network.
While Ethereum and Cardano are both being actively developed, Ethereum is much further along. Cardano has only recently integrated smart contracts into its blockchain technology, whereas Ethereum pioneered this feature years ago.
Another key difference between these two blockchain projects is that Ethereum has much higher transaction fees. Cardano’s transaction fees are often much lower, as they have cost less than $1 this year, while Ethereum’s transaction fees have been as high as $20.
Risks
There are many risks involved when investing in anything, and cryptocurrency is no different. In terms of Cardano vs Ethereum, both will necessarily carry a risk when investing.
Ethereum (ETH)
One of the biggest risks of investing in any cryptocurrency is the fact that it can spike or plummet at a moment’s notice.
While Ethereum might be the second most valuable and well-known cryptocurrency, it is not exempt from this. Ethereum has experienced many serious spikes and dips in its tenure, and this will likely continue in the future.
Cardano (ADA)
The above-mentioned risk also applies to Cardano, as the price of an ADA token could spike or plummet at any moment.
However, Cardano also has the added risk of being a slightly newer cryptocurrency, which means that there is a possibility of it being overtaken by competitors.
Where You Can Buy It
Ethereum (ETH)
Ethereum ETH tokens can easily be purchased from:
Cardano (ADA)
Cardano ADA tokens can be purchased from:
- Coinbase
- eToro
- Crypto.com
- Binance.US
- KuCoin
- HTX
- OKEx
How Can You Exchange ETH For ADA
ETH tokens can be exchanged for ADA tokens on nearly any of the above-mentioned exchanges. The only requirement is that the exchange supports both of these digital currencies.
Future Plans
Ethereum (ETH)
Now that Ethereum has completed its long-awaited merge, the future is looking bright. The merge saw Ethereum moving away from the proof-of-work consensus mechanism to a more energy-efficient proof-of-stake system.
This has led many analysts to believe that ETH tokens should increase in value in the near future, so long as the rest of the crypto industry experiences a change in luck as well.
Cardano (ADA)
Many analysts believe that while Cardano is going through a rough patch at the moment, it will make a big comeback.
These analysts have predicted that one ADA token could be worth as much as $10.46 in the next five years.
Sources
https://www.nerdwallet.com/article/investing/cardano-vs-ethereum
https://cointelegraph.com/ethereum-for-beginners/history-of-eth-the-rise-of-the-ethereum-blockchain
https://cointelegraph.com/ethereum-price
https://www.forbes.com/advisor/investing/cryptocurrency/what-is-ethereum-ether/
https://www.cnbc.com/2021/05/18/why-ethereum-founder-vitalik-buterin-got-into-crypto-bitcoin.html
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