- Cardano has over 2.8 million active users, up 7.3 times since the beginning of 2021.
- The valuation of Cardano per monthly active user, as per Grayscale, ADA is nearly 45% cheaper than its rival Ethereum.
- Analysts expect Cardano to exhibit greater volatility than Bitcoin and other risk-on assets during market cycles, attracting more traders to ADA.
Next-generation internet platform Cardano poses tough competition to Ethereum with its smart contract functionality, attracting exciting DeFi projects and applications to its blockchain.
Third largest cryptocurrency ADA is 45% cheaper than ETH based on user fundamentals
Grayscale, a leader in cryptocurrency asset management, recently published a report on Cardano. The asset management firm has evaluated the Web 3.0 crypto network.
The Cardano network is currently processing over 115,000 transactions per day, up over 13 times since the beginning of 2021.
The early ecosystem projects on Cardano have attracted several applications to the blockchain.
A feature of Cardano that differentiates it from top competitors like Ethereum is that the network allows users to send multiple asset types within the same transaction. This feature is expected to attract more decentralized applications projects to the network.
The altcoin’s transaction count has increased despite the price rise.
ADA price v. transaction count.
The asset management firm valued the altcoin in terms of active users per month and revealed that Cardano is currently nearly 45% cheaper than Ethereum.
Though the rollout of decentralized applications (dApps) on Cardano mainnet is still in its early stages, there is an ecosystem of projects testing their smart contract capabilities on the Ethereum-killer’s blockchain.
Besides, Cardano’s monthly active wallet address count exceeds Ethereum, fueling the narrative that ADA is ready to take over the largest altcoin by market capitalization.
Cardano & Ethereum monthly active addresses.
Grayscale analysts expect that ADA would display higher volatility than Bitcoin and most other altcoins in the long term.
Proponents consider that the rise of use cases and projects on the Cardano network is likely to increase network usage and support value rotation into ADA.