{"id":133959,"date":"2023-03-11T11:03:00","date_gmt":"2023-03-11T11:03:00","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=133959"},"modified":"2023-03-13T10:05:53","modified_gmt":"2023-03-13T10:05:53","slug":"cardano-vs-ethereum","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/cardano-vs-ethereum\/","title":{"rendered":"Cardano (ADA) vs Ethereum (ETH); Which Crypto Should I Invest in?"},"content":{"rendered":"

A good way to decide which cryptocurrency to invest in is to compare two of them. Knowing their similarities and differences is perhaps the best alternative to know exactly which cryptocurrency best suits each investor. Two of the cryptos that have been most compared for their potential are Cardano vs Ethereum<\/a>.<\/strong><\/p>\n

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Both the digital assets are altcoin heavyweights that rank among the top 10 cryptocurrencies and provide users with a massive investment opportunity. Although they provide similar functionalities in relation with smart contracts<\/a> and decentralized applications (dApp), there are some major differences that separate ADA and ETH miles apart.<\/p>\n

Of late, the war between the two formidable opponents has intensified owing to the significant surge in decentralized finance (DeFi) <\/a>projects. Furthermore, the comparison between the two has piqued interest, in part because Cardano founder Charles Hoskinson was also one of the original developers of Ethereum.<\/strong> The Ethereum network seems to be at a commanding position compared to the Cardano network due to its sheer size. It’s the second-most popular cryptocurrency behind Bitcoin (BTC).<\/p>\n

Ethereum is also the most popular network for non-fungible token (NFT) marketplaces, DeFi applications, and numerous metaverse<\/a> projects. While Cardano also host these types of applications, Ethereum is the clear leader in this space<\/strong>.<\/p>\n

However, since launch Cardano has adopted a more cautious path with a peer-reviewed research-driven approach aiming to incorporate academic rigour and math with blockchain technology<\/a>. Its primary focus has been on creating a system that is cheaper to use and more efficient than Ethereum.  <\/strong><\/p>\n

Although there are many similarities between Cardano and Ethereum, they have their differences depending on an individual investor or user\u2019s perspective. In this article, let us understand in details the key differences between the Ethereum (ETH) and Cardano (ADA).<\/p>\n

Main Differences Between Ethereum (ETH) and Cardano (ADA)<\/h2>\n

Ethereum and Cardano seem similar on the surface, but they have significant operational and application differences.<\/strong> The key differences have been segregated under 4 main categories as follows:<\/p>\n

Transaction Volume<\/h3>\n

Ethereum enjoys a wider fanbase handling approximately 1 million daily transactions<\/a>.<\/strong> On the other hand Cardano processes less than 100,000 transactions<\/strong> on a daily basis. However, in regards to transaction speed, Cardano has eclipsed Ethereum in transactions per second (TPS). On Layer 1, Ethereum can process up to 30 TPS<\/strong>. That\u2019s in contrast to Cardano network\u2019s speed, which can process roughly 250 TPS.<\/strong><\/p>\n

Scalability<\/h3>\n

Both Cardano and Ethereum 2.0 are \u201cLayer 1\u201d blockchains<\/strong>, but their designs are different. Ethereum 2.0 uses a single-layer to manage on-chain smart contracts and apps, but Cardano has a dual-layer design that allows for more functionality and scalability. This means, Cardano is more scalable than Ethereum and can handle more transactions.<\/strong> It seems Cardano is capitalizing on things Ethereum is not, and vice versa.<\/p>\n

Transaction Fees<\/h3>\n

Ethereum is infamous for its notoriously high gas fees compared to Cardano. The ETH transaction fees are very high with users have to pay 2$ to 6$ for just 1 transaction<\/strong>.  In comparison, Cardano gas fees are consistently lower, averaging 0.16 ADA per transaction.<\/strong><\/p>\n

DeFi Ecosystem<\/h3>\n

The current boom in the DeFi projects has had a major impact on both Ethereum (ETH) and Cardano (ADA). The global decentralized finance market size<\/a> was valued at $13.61 billion<\/strong> in 2022 and is expected to expand at a compound annual growth rate (CAGR) of a staggering 46.0%<\/strong> from 2023 to 2030. This exponential growth has put Ethereum as well as Cardano on the forefront with a number of upcoming upgrades on both the blockchains.<\/p>\n

\"Cardano<\/p>\n

Since Ethereum was the first chain with smart contracts, it dwarfs Cardano’s smart chain ecosystem. To put things into a perspective, Ethereum has more than 3000 dApps<\/strong> running on it, whereas Cardano has a little over 1,000<\/strong>. When looking at total value locked (TVL), Ethereum’s DeFi ecosystem outshines Cardano<\/a> by a long shot. Subsequently, Cardano comprises only a tiny fraction of Ethereum based on TVL being less than $100 million<\/strong>. In a nutshell, Ethereum has clinched the winning trophy in this category.<\/p>\n

\"Which<\/p>\n

Meanwhile, even on the NFT front Ethereum (ETH) manages to put forward a sweeping victory<\/strong> with some of the most popular and lucrative NFT projects including CryptoPunks<\/a> and Bored Ape Yatch Club<\/a> (BAYC). On the other hand, the Cardano NFT ecosystem is also  heating up with the three most popular Cardano NFT collections are Skyweaver, Etheremon, and Spells of Genesis<\/a>.<\/p>\n

Cardano’s NFT project, Clay Nation, also revealed an integration with The Sandbox Game, a virtual world where players can build, own, and monetize their gaming experiences. Thus, these developments seem to be providing Cardano with a lot of credibility. <\/strong><\/p>\n

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Enter The Sandbox \ud83e\udea8 <\/p>\n

Clay Nation will become the first @Cardano<\/a> project to be integrated in @TheSandboxGame<\/a> – pushing interoperability even further in #Web3<\/a><\/p>\n

The experience will be created in collaboration with @smoblerstudios<\/a>. <\/p>\n

Stay tuned for more. pic.twitter.com\/kzdSsUyKpW<\/a><\/p>\n

— Clay Nation (@claymates) February 25, 2023<\/a><\/p><\/blockquote>\n