Could Cardano (ADA) take over Ethereum and Bitcoin?

Could Cardano (ADA) take over Ethereum and Bitcoin?

08/26/2021

CARDANO (ADA) has had a good run this year, even though the cryptocurrency market has struggled in the last few days.

Next up, investors may be wondering whether the cryptocurrency could overtake Ethereum and Bitcoin. We explain what you need to know.

What is Cardano?

The blockchain cryptocurrency was established Charles Hoskinson, who was one of the eight co-founders of Bitcoin rival Ethereum.

But when compared with both Bitcoin and Ethereum, Cardano is known as an environmentally-friendly cryptocurrency.

According to Hoskinson, Cardano uses just six gigawatt hours of energy per year.

Meanwhile, Bitcoin and Ethereum use a combined 180-terawatt hours annually.

Specifically, one terawatt equals 1,000 gigawatts – meaning the energy used when compared with Cardano is substantially higher.

Cardano uses a proof of stake system, which restricts the amount of devices when verifying transactions. This helps keep energy relatively low.

In addition, Cardano processes as many as 257 transactions per second, compared to around five and 15 for Bitcoin and Ethereum, respectively.

What are the risks?

Whether you are looking at Cardano, Bitcoin, or Ethereum, all these cryptocurrencies come with risks.

This is because they aren’t regulated – meaning you won't have protection if something goes wrong.

Plus, fees and charges may be higher than regulated investment products.

You could also lose a lot of money quickly – given the high volatility in the crypto space.

For example, the price of Cardano dropped to as low as $1.06 in May, down from its high of $2.46 earlier in the month.

And be sure to carefully research crypto, as the industry can be challenging to understand.

Can Cardano overtake Bitcoin and Ethereum?

While Cardano has some advantages, it’s still much less valuable than the other two cryptocurrencies.

In terms of market capitalization, Cardano is valued at under $90billion.

Bitcoin commands a market capitalization of nearly $1 trillion, whereas Ethereum is valued at around $372 billion.

However, the gains Cardano has experienced this year have far exceeded Bitcoin and Ethereum.

Year-to-date, Cardano is up more than 1,400%, Ethereum has risen 330%, and Bitcoin has climbed 67%.

The question is will Cardano be able to sustain those types of gains in the future?

Lark Davis, crypto analyst and YouTuber, this week said that if Cardano quadruples its value, which may happen, it would hit the same market cap as Ethereum.

And if it rose by 10 times, then it would have the same cap as Bitcoin.

Meanwhile, another expert is skeptical about big gains for Cardano happening in the long-term.

"Cardano is a ship on a rising blockchain and wider DLT tide,” Elizabeth Hunker, an advisor at blockchain firm DecentraNET told The Sun.

“But its longevity and/or long term 'moon potential' is another thing altogether, and entirely dependent if its Ghost Chain ecosystem, aka, notable lack of dApps, coming to life.”

Currently, Cardano trades at $2.57.

By the end of the year, Cardano is expected to hit $5, according to CoinPriceForecast.

Then by mid 2025, the price of Cardano is forecasted to double to $10. That would give it around a $316 billion market capitalization.

In a year, WalletInvestor sees Cardano’s price hitting around $4.74. In five years, the forecast is lifted to roughly $12.51.

Separately, Tesla CEO Elon Musk, who at times has an influence on market trends, has expressed environmental concerns over Bitcoin.

The price of Bitcoin has been volatile since Musk said that Tesla in May would stop accepting payments of the cryptocurrency.

However, Musk still holds Bitcoin and has said that there is a future with the cryptocurrency and Tesla. The billionaire also owns Ethereum, but not Cardano.

Previously, we’ve revealed 2021 price predictions for Cardano, Ethereum, and Litecoin.

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