Other than Bitcoin, Ethereum is the largest and most popular cryptocurrency in the world. It was touted as a more advanced alternative to Bitcoin, and it certainly offers a number of advantages over the flagship cryptocurrency.

However, in recent years we’ve seen a number of investors turn their backs on Ethereum in favour of Cardano. In this article, we take a look at the differences between the two assets, study the current Cardano price, and discuss why traders are choosing it over Ethereum. Read on to find out more.

Ethereum and Cardano: A History

Ethereum was launched in 2015 and quickly rose through the ranks. As of today, it’s the second largest coin, with a market cap of $221.94 billion, second only to Bitcoin.

It was launched as a direct rival to Bitcoin, with a blockchain platform that is faster and more advanced. As well as processing transactions with the ETH cryptocurrency, the Ethereum blockchain also allows for the development and hosting of various apps and tools.

Cardano hit the market two years later in 2017. It was designed by Jeremey Wood and Charles Hoskinson, who were also key developers of Ethereum but chose to leave and forge their own path. Cardano offers many of the same features and capabilities as Ethereum but, crucially, has adopted a different consensus mechanism.

For years, Ethereum used a proof-of-work (PoW) consensus mechanism through which transactions were validated and added as blocks to the chain. However, over time this system proved slow, inefficient, and used huge amounts of energy, making it a major contributor to carbon emissions.

Cardano makes use of a proof-of-stake (PoS) consensus mechanism, which is far more efficient and environmentally friendly than PoW. While Ethereum has since switched to a PoS system, this difference gave Cardano the edge for a number of years.

The Cardano Price

One of the best ways of measuring the health and success of an asset is to analyse its price performance.

Currently, Cardano is sitting at a price of $0.29. This represents monthly growth of 3.46%, but the asset is down by 41.28% year-on-year.  However, these wild fluctuations in price are nothing new in the crypto world and should not be used as a barometer of an asset’s long-term viability or future potential.

When compared to Ethereum, which is currently at a price of $1,830.98, Cardano might not seem like an attractive option. However, we’re seeing an increasing number of traders choosing Cardano over Ethereum. Why is this? Find out below.

Why are Traders Leaving Ethereum?

When Ethereum landed on the scene, it was lauded as a sophisticated, highly advanced asset. Over time, however, certain flaws have become apparent which has seen the asset lose some of its popularity.

Transactions conducted over the Ethereum network can be slow, and they often incur high transaction fees when compared to other cryptocurrencies. This is not exactly what users are looking for in a modern, decentralised payment system, and has proved to be a major stumbling block for Ethereum.

Additionally, Ethereum has issues with scalability and struggles to cope with large user increases. As crypto continues to grow and become further integrated with mainstream businesses and industries, this will prove key, and coins that can cope with surging demand will be prioritised.

Finally, there is no limit on the amount of Ethereum that can be created. This means that investors will find it hard to see their assets appreciate in value as there will always be new Ethereum in circulation.  

Why are they turning to Cardano?

Given the asset’s flaws, it’s no surprise that traders are looking for an alternative. Cardano addresses many of Ethereum’s flaws, which has seen it become a popular choice.

Transactions made using Cardano cost less than those made using Ethereum. They also process faster and the blockchain is far more energy efficient.

Furthermore, the way in which the Cardano blockchain is designed makes the asset far more scalable than Ethereum. Its dual-layer system means the network can be expanded rapidly to deal with traffic spikes. As user activity increases, the service remains unaffected. With transaction speeds staying low.

Cardano is a well-respected asset with lots of support from industry players and tech experts. It’s run by a knowledgeable, experienced team, and many have faith that it is the true future of the crypto industry.

Finally, unlike Ethereum, Cardano has a hard limit on the number of coins it can produce. The Cardano limit for the ADA cryptocurrency is 45 billion, after which no more coins will be released into circulation.

Conclusion

Despite some similarities, Ethereum and Cardano are two different assets, so it’s difficult to say if one is better than the other. While Cardano seems to address many of the flaws in the Ethereum network, Ethereum also has the backing of a large, active community and a positive, long-standing industry reputation.

However, in recent times we have seen many traders leaving Ethereum for Cardano. As we move into the next generation of cryptocurrencies, this trend could well continue, and we could see Ethereum being left behind as other more advanced assets come to the fore.