Markets

Is Cardano or Ethereum a better investment in 2024?

Published

11 months ago

25 May, 2024

Is Cardano or Ethereum a better investment in 2024?

Markets saw a huge increase in the price of Ethereum this week on cryptocurrency exchanges. What’s behind this and what factors can investors take into consideration to determine whether Ether or its friend Cardano is the better buy?

Ethereum celebrates its birthday on July 30th. It was launched in 2015 to create a “world computer” with the same Web3 blockchain properties that Bitcoin has for storing money and making payments.

Cardano was launched on September 23, 2017 via initial coin offering (ICO) and founded by Ethereum co-founder Charles Hoskinson. Today it is the tenth largest cryptocurrency by market capitalization.

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

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

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

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

Ethereum price is almost back to its ATH (all-time high) after soaring this week on Ethereum spot ETF buzz. Cardano has a long way to go. In fact, this could be more bullish for ADA with more upside remaining in its price.

O recent The approval of the Ethereum ETF will shake up the entire Ether investment goal. If bulls push the price beyond $4,000, another 12.5% increase would take ETH to $4,500 – within impressive range of Ethereum’s previous ATH of $4,721 in November 2021.

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

In the short term, Cardano’s technical indicators and moving averages over the weekly time frame recommended “Sell” on Thursday. Meanwhile, Ethereum technical indicators for the seven-day period 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 I certainly agree: US regulators appear to favor Bitcoin and Ethereum about Cardano and other DeFi networks.

The SEC agreed to Ethereum futures ETFs in October, revealing that it did not appear to think of Ether as an unregistered security. However, the US regulator classified Cardano and other cryptocurrencies as unregistered securities in lawsuits against several blockchain companies, ignoring Bitcoin and Ether.

Like Fortune magazine reported in May 1, “Furthermore, despite launching a series of lawsuits against crypto companies since April 2023, the agency has never named Ether as a security in its complaints.”

The SEC’s lawsuit against Ripple has taken years (since December 2020) and is still unresolved. It is expensive and leaves the future uncertain for the currencies that are in the government’s sights.

Markets abhor uncertainty.

It may not be fair, but it is bullish for ETH and bearish for ADA.

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

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

Graham says:

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

If a company’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 company’s market value, then it may be a bad investment.

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

Analyzing the above data without any additional context, it appears that Cardano would be the winner because its inflows represent 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 uneven institutional adoption between the two will make this difficult for Cardano unless it finds a use case, a feature/benefit, and a narrative that shakes up the internet retail markets for cryptocurrencies.

4. Cardano vs. Ethereum – Gas Fees (cat 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 cybercrimes that don’t pay off, so it’s safer. Big institutions like that.

This is one of the reasons why the industry leader, Bitcoin’s slow and expensive network with 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 discrimination on any basis other than ability and willingness to pay network fees.

Yet for newcomers, entrepreneurs, startups, and investors who are starting with a smaller cash pile, lower-fee smart contract blockchain networks like Cardano have an advantage. Transaction fees on both networks are highly variable and peak during periods of high network usage.

5. Ease of use – Cardano (another draw)

Some people on Web3 think that Ethereum has an ease of use problem. It has become too cluttered with complicated and byzantine layers upon layers, creating a steeper learning curve and potential security threats.

Blockchain advocate Daniel Cawrey wrote in a recent op-ed about Blockworks:

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

While true, just like Ethereum’s higher transaction fees, Ethereum’s complexity could be a reason to be bullish on ETH. It could simply be a testament to the network’s success. As Cawrey acknowledges in the article, the network is beginning to achieve its “worldwide computer” concept.

Any expert in computer architecture would have difficulty explaining as a A Turing complete global computer that anyone can use in a peer-to-peer network would become anything but a flying monster of complexity.

6. Ether vs. Cardano Whales (bullish ADA)

A massive 15,000 ETH whale deposit into Kraken on May 18, detected by Whale Alert, suggested that a bearish run on Ether by whales could be coming, but after the SEC approved the spot Ethereum ETF, a surge in transactions the size of whales he was net positive for the network, according to data from IntoTheBlock.

Meanwhile, Cardano whales have been extremely bullish for ADA in May. They increased holdings in Cardano tokens by 11% in a month. Whales tend to be intelligent, with some of the most advanced market analysis and outlook to know what they are doing, which is positively bullish for Cardano.

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

7. Ethereum vs. Ethereum Cardano Memes (bullish ETH)

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

Cardano managed to create 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 would do the trick.

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Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

9 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

Source

Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

9 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

Source

Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

9 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

Source

Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

9 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week