In the year 2021, Cardano and Solana achieved commendable gains. They have both reached their all-time highs and are climbing the cryptocurrency charts for the best token in terms of market capitalization. Both of these projects have been on my mind for quite some time.
Cardano and Solana are currently in the spotlight within the cryptocurrency sector, so I am going to compare them and discuss their similarities and differences. Furthermore, I will describe which coin has the highest profitability potential among the two.
Cardano and Solana are considered to be great projects, both of which have attracted large investments in the recent past. As a result of Cardano’s stronger fundamentals and a number of other factors, like its better usability and higher profit potential, it seems to be a better investment than Solana. Every day, Cardano’s network becomes more efficient, making it much harder for Solana to catch up with its competitor. Let’s take a closer look at both projects and come up with some solid conclusions based on the similarities and differences between them.
A brief introduction to Cardano and Solana
Cardano is essentially designed to run smart contracts, like Ethereum, in a scalable and more sustainable manner. DeFi applications, crypto games, and tokens can all be developed using the platform. Smart contracts will be rolled out for Cardano in mid-September under the name Alonzo Hard Fork upgrade. Smart contracts will be able to be imposed on the platform with this upgrade, thereby boosting the platform’s efficiency. The platform is one step closer to delivering Cardano’s promise of providing a secure, scalable, and energy-efficient blockchain. ADA, the native coin of the Cardano platform, is also performing incredibly well in the market because of its outstanding performance.
As a blockchain project, Solana is focused on solving the scalability issue. The goal is to make the network as fast and efficient as possible. Through 200 validating nodes, Solana can handle 50,000 transactions per second and make new blocks every 400 ms. In addition to all that, Solana charges zero transaction fees. Solana’s native token is called SOL, with a maximum supply of 489 million and various uses.
Comparing Cardano and Solana
Both of these cryptocurrencies can be bought, sold, traded, and staked on trustworthy cryptocurrency exchanges around the world. There are native crypto tokens on both of these networks. For Cardano, it is ADA, and for Solana, it is SOL. You can trade them with fiat and other crypto pairs. With their histories, both of these projects have cultivated a reputation both in the market as well as among consumers. Both of these projects are concerned with scalability and decentralization in the crypto sphere. Solana and Cardano are often referred to as Ethereum killers. Moreover, neither Cardano nor Solana can be mined by the users.
Based on market capitalization, Cardano is ranked third in the list of most valuable cryptos, while Solana is ranked ten. Smart contracts will be added to Cardano soon, but Solana lacks this functionality. Cardano is more appropriate to be Ethereum’s direct competitor than Solana because Solana is often criticized for lacking transparency in its network.
Economics and the price history of these tokens
There are currently around 31 billion ADA in circulation and a maximum of 45 billion can be reached. While SOL’s maximum supply is 489 million, its circulating supply is 26 million. SOL’s current value is $70.02, while the price of ADA is about $2.08. In addition, ADA has a trading volume of $1.01 billion, whereas SOL has a trading volume of $809.29 million. Recently, both these projects made gains at the start of 2021. However, they began to falter after market trends turned bearish. Both of these projects have scaled up significantly in the last couple of weeks.
Despite the fact that Cardano and Solana have very different prices, this is mostly due to their supply. As SOL’s supply is far less than ADA’s, SOL’s price is higher. Yet, both coins have appeared to show a significant correlation over the last few years. There have been times when they have upgraded and downgraded at the same pace.
Cardano and Solana’s worth is expected to increase as a result of ETH 2.0. Right now, Solana is aiming to topple its all-time high, and Cardano is trying to surpass its ascent. It is anticipated that the Alonzo upgrade of Cardano will give Cardano the boost it needs so that it can grow far beyond its current market cap. The advantage Cardano has over Solana could increase as a result.
Overall, these two projects have a very bright future. In our opinion, those interested in investing and trading should consider Cardano first because the latter has a much greater likelihood of success. In light of the upcoming improvements, Cardano is poised to thrive as both a project and a crypto token.
Disclaimer: Opinions expressed are not investment advice. Do your research.