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The Ethereum killer story has been going on for a long time. While many cryptos claimed to be a powerful rival, none were able to dethrone the king of cryptocurrencies. However, with Ethereum’s gas cost issue remaining unresolved following the London hardfork, big market players such as Cardano jumped at the chance.
Since the July 20 bottom, ADA has been on an uptrend, and its swift rebound and independent movement is indicative of market strength. This year, ADA passed the $1 mark, which was followed by a new ATH of $2.97.
It is already almost three times higher than it was a few months ago. Many analysts and investors believe that the key reason for this is a slew of substantial changes to the ecosystem.
The recent launch of Cardaswap DEX, an automated market maker on the Cardano Network, sparked speculation that it could be a “Uniswap killer.” Rightly so, given the parallels in how they work. However, this fueled conjecture of Cardano taking over the Defi space, elevating Cardano’s position as an Ethereum killer yet again.
Another significant milestone for the Cardano network was the creation of an ERC-20 converter to bring Ethereum assets to Cardano’s testnet. The debut of the new tool on the testnet next week has hyped up the community. The question now is whether this will have any effect on the price of ADA.
ADA price set to blast
With smart contracts only a few weeks away and continual developments on the Cardano blockchain, ADA will likely rise in value in the next days. ADA has historically pumped before or around an upgrade. However, retail excitement appeared to be fading as trading volumes fell after ADA achieved its all-time high on August 23.
A decrease in social volumes since August 24 was also indicative of decreased social attractiveness. However, alts tend to rally far better when there is less focus on them, which worked in favour of ADA’s price. Furthermore, ADA’s valuation on an ADA/BTC chart has grown steadily, which is a positive sign for its price movement.
According to analyst Benjamin Cowen, ADA’s movement will be determined by Bitcoin’s movement in the coming days, and whether BTC maintains its 20-week moving average and continues to move at the same rate in the coming weeks. If it happens, the chances of ADA breaking through the $3 barrier are very high. Cowen went on to say,
“Ultimately I do see ADA trending much higher than $3 this market cycle, but we do have to take it one milestone at a time and $3 seems to be the next for now.”
So, will Cardano take over Ethereum?
On the price front, ADA appeared to be doing well, but this takes us to the meat of the issue: will Cardano replace Ethereum? Cardano’s transaction processing capacity is far more than Ethereum’s. However, whereas Cardano is being upgraded, Ethereum already has over 3000 dApps, accounting for more than 80% of the whole ecosystem.
It appears like Cardano’s takeover of Ethereum is still a long way off. Having said that, it is already the third largest cryptocurrency in terms of market value, and it is clearly getting closer to Ethereum.