Industry giants Cardano (ADA) and Ethereum (ETH) are among the top 10 cryptocurrencies by market capitalization.
They are comparable in both appearance and functionality, and Charles Hoskinson, the creator of Cardano, was also a founding member of the Ethereum development team. However, there are a few minute variations between the two. So, let’s compare these crypto-monsters, Cardano vs Ethereum.
Cardano & Ethereum: What’s in common?
In the form of ADA for Cardano and ETH for Ethereum, investors may buy transactional coins from Cardano and Ethereum. Both “Layer 1” blockchain systems let programmers create self-executing smart contracts and decentralized apps (dApps) on their own blockchains.
The fact that both Ethereum and Cardano use proof-of-stake consensus techniques for their blockchains is another commonality. Participants that want to assist in transaction verification under the proof-of-stake model “stake” cryptocurrency on the blockchain as security.
Compared to Bitcoin’s proof-of-work consensus method, staking is a more ecologically friendly alternative (BTC). Under the proof-of-work model, computers use a lot of power as they struggle through challenging tasks to validate and complete blockchain transactions.
Recall that Ethereum started off as a proof-of-work system before switching to a proof-of-stake one in September 2022.
What makes Ethereum different from Cardano?
Ethereum has longer history
Of the two cryptocurrencies, Ethereum is the more established, more valued, and older one. In terms of smart contracts—transaction protocols that automatically carry out the conditions of contracts or agreements—the top altcoin is also further along in its development.
The Cardano team is continuously working on important features, and new services like smart contracts have just been launched. According to Martin Leinweber, digital asset product strategist at index provider MarketVector, Ethereum was the first platform to implement this capability a number of years ago.
Ethereum is used by more individuals than Cardano. Compared to Cardano’s daily transaction volume of about 100,000, ETH processes almost 1 million transactions everyday.
The price of Ethereum is increasing along with its popularity. Both cryptocurrencies have transaction fees, but ETH’s are seen as being greater, reaching up to $40 per transaction, while each Cardano transaction costs only between $0.15-$0.18.
If you just want to purchase ETH as a long-term investment, this information is less significant. But if you intend to use cryptocurrencies for decentralized financing (DeFi), smart contracts, or other transactions, it’s something to take into account.
There will never be more than 45 billion ADA coins in circulation. Setting a hard ceiling like this is common; for example, Bitcoin’s 21 million coin hard cap is a well-known and adored characteristic.
On the other hand, there is no hard limit on the overall amount of ETH for Ethereum. Beyond a hard cap, it employs other ways to limit supply. There is a restriction on the total amount of ETH that may be issued annually, and there is a way to “burn” ETH that has been used to pay for gas.
Potential to scale
Scalability is made possible by the blockchain infrastructure, which is a key component of a good “Layer 1” crypto. Compared to Ethereum, the Cardano system is more scalable and can support more transactions.
On Ethereum, there is a difficulty with its high volume of transactions. The network functions properly when things are calm. However, when a bull market takes off and millions of fresh investors pour money into cryptocurrencies, Ethereum can no longer keep up.
Which crypto is worth investing?
Whether Ethereum or Cardano is a superior investment depends on your preferred methods of investing.
The more secure investment of the two is thought to be ethereum. According to experts, Ethereum’s greater development community and ecosystem increase the likelihood of its long-term viability.
On the other hand, considering its potential user base in emerging and frontier regions, Cardano could be the ideal long-term investment. The vast usefulness of the network may take some time to become apparent, but there is larger potential upside from the current price.