Ethereum vs Cardano: Which is safer for traders?

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For the past week, the controversy between Ethereum and Cardano has jolted crypto Twitter. After the announcement of the Berlin update, there has been speculation that Ethereum’s price will rise; however, the reverse has been observed on spot exchanges.

Altcoins with low to medium market capitalizations, such as DOT, ADA, LINK, FIL, and THETA, have made a comeback. These top altcoins’ prices have now fallen, as has Ethereum’s, but their 24-hour trading rate is rising every day.

Q1 2021 Ethereum metrics paint a straightforward image and include an on-chain recap of Ethereum. Ethereum was predicted to make a comeback with over 586k regular active addresses on average, a 4.44 million rise in addresses with a reserve, $933.6 Billion Ethereum being transacted on-chain, and 96.67 percent YTD average address profitability.

 

However, over 3.986 million ETH was left on exchanges in this quarter. This may have added to the scarcity myth, but it had little bearing on the price. The increased volume demonstrated that there is liquidity; however, this has had little effect on the market, which continues to fall at the time of writing.

Cardano, on the other hand, has almost nine times its market capitalisation in the last year. The market dominance was 2.17 percent, and the new price is 22.9 percent below the all-time high. Cardano’s trading rate, like Ethereum’s, has increased by more than 68 percent in the last 24 hours.

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Cardano’s sentiment, like Ethereum’s, has been bearish. However, based on options operations, the mood in the case of Ethereum is currently neutral. At first glance, it can seem that Ethereum is the obvious winner because 95 percent of ETH HODLers are profitable compared to 55 percent of Cardano HODLers.

What is noteworthy from the intotheblock on-chain study is that nett network growth in the case of Cardano is optimistic and comparatively higher. In the case of ETH, saturation could have arisen due to delays in the introduction and deployment of updates.

The price of ETH has been affected by derivatives trading behaviour, but when comparing the two commodities in a retail trader’s portfolio, the benefit percentage is primarily determined by the point of entry and purchase price for each commodity. While it may seem logical to believe that since ETH has a greater network impact, miners, and culture, it is winning this fight, this may not be the case.

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Cardano has been delivering updates earlier than Ethereum, and unlike Ethereum, not all of the 55 percent HODLers are selling at the same price level. There may be another way to win the battle by balancing ETH and ADA in the portfolio, and retail traders may be used using dollar-cost averaging to reduce unrealised gains from ETH over time.

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