Why are new investors preferring Cardano over Bitcoin and Ethereum?

 110 Interactions,  2 Today

Alex Krüger, a crypto trader and analyst, recently commented on why Cardano may be the most sought-after cryptocurrency among new investors. He attributed ADA’s popularity to “a podcast.”

While crypto podcasts are popular, he was referring to the one hosted by Charles Hoskinson.

 

Hoskinson is the co-Founder and CEO of IOHK, the company behind Cardano, and is active on social media platforms. On his channel, he explains concepts that include Cardano’s update proposals, global crypto challenges along with conducting regular AMA or ‘ask me anything’ sessions.

It might essentially mean that he can deliver clarity to first-time investors on his project, according to Krüger.

See also  These are the reasons why Solana and Polkadot achieved 'escape velocity.'

Upgrades

On the Cardano upgrade front, the community released its near-term status update on October 8. It stated that the team is working on an October maintenance upgrade along with making some more ERC20 deployments.

It also stated that in order to improve decentralisation, it has updated Cardano node dependencies and reimplemented the transaction confirmation modal.

Furthermore, the Cardano team is reviewing a few testnets, such as the Daedalus testnet v.4.3.2, and focusing on debugging, among other improvements.

Despite the positive development momentum, the end of last month was not ideal for Cardano. Since the average number of large transactions on-chain has dropped dramatically.

 

CoinShares weekly fund flows report, for a period until 1 October, showed that Cardano received only $1.1 million in capital inflows.

Outlook

But, it doesn’t necessarily warrant a negative outlook. Grayscale Investments’ latest report estimated that the network “demonstrated positive fundamental trends.”

Further in the near term, the report stated that new Dapp, NFT, and token launches may lead ADA holders to shift their allocation to these assets. Meanwhile, the network is not free from competitive threats.

See also  Celsius users will benefit from the company's $200 million Bitcoin mining investment.

The report cited that there is competition from “Layer 1 blockchains with smart contracts capability” like Ethereum, Solana, Internet Computer Protocol, Avalanche, and others.

While Cardano recently deployed smart contract capabilities through Alonzo, the application of DAPPs function is still in the initial phase. But it is noteworthy that the Cardano Foundation recently announced several strategic partnerships with names like COTI, Chainlink, Rival, etc. in the Cardano Summit 2021.

These partnerships are expected to further increase the adoption and use cases of the Cardano network in the upcoming days.

Frederik Gregaard, CEO of the Cardano Foundation had said,

“Our new ecosystem partners cover a range of challenges and opportunities at the forefront of global society today, including climate change, NFTs, decentralized finance (DeFi), and digital identity, and they will play a pivotal role in helping us realize our vision.”

Subscribe to our newsletter

Loading

Leave a Reply

Your email address will not be published. Required fields are marked *