Baisakhi MishraWhile Ethereum and Bitcoin have hit many all-time highs in the last two months, Cardano hasn’t. The launch of smart contracts didn’t seem to give it much of a boost, and its market cap continues to fall. Cardano’s (ADA) price has decreased since smart contracts were launched
Cardano is going through a slow period
Cardano’s (ADA) price has decreased since smart contracts were launched. ADA’s price peaked at approximately $3 on September 2nd, 2021, and its market worth nearly topped $100 billion. This was followed by a sharp decline on September 7th, when El Salvador’s Bitcoin law went into effect, along with the rest of the crypto market.
Image Source: Cardano Feed
Input-Output, the developers behind Cardano, verified the implementation of the Alonzo upgrade less than a week later. Using the Plutus framework, smart contract compatibility was added to the network. The price of ADA rose briefly to $2.71 in the aftermath, then fell back to $2.50 the next day.
Competition for Cardano
Cardano and Ethereum were regularly placed as competitors by the crypto community earlier this year, despite CTO Romain Pellerin’s disapproval. Pellerin said he’s not sure why people connect Cardano to Ethereum, even though the two projects have been compared many times by community members.
He said, “I’m not sure why Cardano is compared to Ethereum. Ethereum is a proof-of-work blockchain. We run a different ledger model.“ Cardano, according to Pellerin, will be “on par with Ethereum” after smart contracts are removed, with a far lower carbon footprint than Ethereum or Bitcoin.
When asked if he sees a future in which Cardano replaces Ethereum as the second most valuable cryptocurrency after Bitcoin, the IOHK CTO said that he doesn’t think it matters because we’re currently seeing a “verticalization of blockchains to tackle a specific industry – supply chain or financial, for example.”
Furthermore, he stated that he does not know what will happen in the future, but detailed a few things Cardano accomplishes that “Ethereum is not even looking at.”
Charles Hoskinson favors Cardano
As a result, Cardano founder Charles Hoskinson has advocated that Tesla should accept ADA as payment. Elon Musk declared in May that his company would stop taking Bitcoin payments owing to the cryptocurrency’s mining harming the environment. Cardano, as a proof-of-stake chain, does not necessitate such high energy consumption.
Image Source: Cardano Forum
In a recent interview with Lex Fridman, Charles Hoskinson outlined the benefits of his proof-of-stake blockchain platform Cardano. In comparison to its competitors, the PoS system consumes significantly less energy, according to him.
It’s not the first time Charles Hoskinson has favored Cardano over its competitors. He slammed Ethereum’s network in late May, calling it overvalued and highlighting a lack of essential qualities. He then offered his three arguments for why Cardano is the superior blockchain project.
While Cardano awaited smart contracts, Solana, a competing blockchain, grew at an exponential rate throughout the year. It is now the fifth-largest cryptocurrency market cap, thanks to its proof-of-history consensus methodology, which allows for a huge volume of TPS and minimal energy usage.
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