Could Cardano Overtake Ethereum in 2022? What Would That Mean for KICK?
Nothing is a given in the world of cryptocurrency and even investors who are sure that the main token will always be BTC may find themselves disappointed in the wake of a radical shift. After all, it’s the very volatility of cryptocurrency that makes it such an enticing investment for those looking to make substantial returns
While Bitcoin and Ethereum are currently on top, Cardano is not far behind and it’s possible that Cardano may end up taking second place away from Ethereum in the near future.
*Disclaimer: The information provided in this article is for informational purposes only, and is NOT investment advice. Please do your research and consult with a professional before making any investment decisions.
How Could This Happen?
One of the factors that may go into making Ethereum slip behind Cardano is that its market cap has been falling behind at an alarming rate since the year started. Compared to Bitcoin losing 10% of its market cap in the same time, Ethereum has lost about 20%. ETH is now more than 33% below its all-time high.
This huge slide does not mean that Ethereum is only going to have more problems overtaking Bitcoin, but it also means that some of the currency’s main competitors are going to have a chance to catch up to it, and this includes Cardano, which is also known as ADA.
Throughout the past six years, Ethereum has seen pretty major jumps in January, though that does not seem like it is going to be the case this year. So far in January, we have seen a drop of about 16%, which has only been exceeded by the 20% drop that we saw in Ethereum back in January 2019.
While Ethereum is only now adopting a proof-of-stake protocol, Cardano is already there, meaning that ETH is going to be set back pretty immensely because it has not yet adopted something that its competitors have considered elementary for a relatively long time.
When we started KICK.IO, we recognized Cardano’s vision and how its POS protocol enables speed, scalability and affordability. These factors are why we chose Cardano as the platform to build our launchpad on and they are also the reasons conditioning ADA’s price rise.
The longer that it takes for ETH to switch over to PoS protocol, the more time its competitors have to capitalize on their temporary advantage. While it is understandably a lot of work to switch the protocol over, it is making the currency suffer as a whole until it is unveiled.
In fact, this push forward has been delayed pretty dramatically. It was originally supposed to take place in 2019, and since then, it has been moved to June 2022. Since it has already been delayed so significantly, it is not impossible to imagine that we will see things getting delayed even further.
If this ends up happening, it will create a very real chance for other currencies like ADA to start overtaking ETH as investors start getting sick of it being outdated compared to the next best competitors. Along with Cardano, we may also see other competitors like Fantom starting to catch up.
During the time that we have seen Ethereum lose 20% of its worth, we have seen Cardano rise slightly (almost 4% from 20–12–2021 to 20–01–2022). If this trend continues, Cardano could eventually catch up to the traditional runner-up cryptocurrency.
It’s About More Than Market Cap
One thing to keep in mind is that the market cap of a currency will not tell you everything that you need to know about it. Along with the market cap, pay close attention to transaction volume, number of holders, number of projects and more. This will give you the full picture.
Here is how Cardano stacks up against Ethereum in other metrics:
Daily Transactions
- Cardano: ~150,000 per day
- Ethereum:~ 1.1m per day
Note: Ethereum’s transactions per day reached 1.7 million last May. They have been declining since, largely due to issues with network speed and fees. Meanwhile, Cardano’s daily transactions have remained in an uptrend.
Number of Wallets
Note: While the difference may look large, Cardano’s growth rate is much higher, and therefore Cardano could close the gap on this metric sooner than you would think. The number of Cardano users has already increased by 1200% since the beginning of 2021.
Number of Projects
Note: Again, while Cardano has some catching up to do, its growth rate is much higher. The number of projects built on Cardano increased by 42% in just over two months. Having more projects and activity on Cardano should ensure more innovation and sustainability — and put Cardano in position for long-term growth and success.
What Would This Mean for KICK?
So what would this mean for KICK?
Because KICK is Cardano-based, there are numerous benefits to Cardano’s continuous upward trend.. With the growth of Cardano, KICK can see simultaneous growth because more people will start investing in the tokens and potentially using them to invest in our launchpad projects.
Along with more people investing in the launchpad, more potential investors will become interested in Cardano and start doing research about it. If they start researching launchpads that are based on the ADA ecosystem, they may come across KICK.IO on their own.
This essentially acts as organic marketing and allows us to grow the number of our supporters. Along with making it easier for us to grow, this organic growth will also allow us to optimize use of our resources. With steady growth of the Cardano ecosystem, we will have more available resources to improve the features of our launchpad, reach new investors, form exciting partnerships, and expand our team.
