Cardano (ADA) outperforms the top-50 - USD 2 within reach

Cardano dominates the top-50 while Ethereum continues to benefit from token burn. Market Update.

Cardano’s (ADA) share price continues to be on the upswing as the highly anticipated upgrade “Alonzo” is just around the corner. Alonzo will give Cardano smart contracts and could, at least according to the project’s ambition, become a serious competitor to smart contract pioneer Ethereum. Exactly when that will happen is something Cardano founder Charles Hoskinson plans to announce later today.

Cardano bulls are (still) locking horns

At the time of writing, ADA is trading at $1.97. The prospect of a concrete launch date for Cardano smart contracts, which are the foundation for a thriving ecosystem of decentralized applications (dApps), is giving ADA’s share price a hefty 12.6 percent daily gain at press time. This means Cardano is significantly outperforming the rest of the top 50 coins.

Within the last 24 hours, the Cardano price has scratched the USD 2 mark several times, but a convincing breakthrough has failed to materialize so far.

Cardano (ADA) outperforms the top-50 - USD 2 within reachCardano (ADA) outperforms the top-50 - USD 2 within reachCardano (ADA) outperforms the top-50 - USD 2 within reach
ADA price in the 15-minute chart. The 2-USD mark has not yet been broken. Source: TradingView

Even though the 2-USD mark still presents itself as strong resistance, Cardano is looking back on a bullish week. The ADA share price has gained a whopping 43.4 percent in a 7-day comparison. It will now be interesting to see if a “buy the rumour, sell the news” type scenario unfolds following Hoskinson’s Alonzo update, or if it will provide the necessary momentum for a sustained move above the $2 mark.

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Ethereum: EIP-1559 continues to heat up Ether price

Meanwhile, holders of Cardano competitor Ethereum (ETH) can’t complain about a lack of returns at the moment either. At USD 3,200, the Ether price can continue to trade above the psychological barrier.h significant USD 3,000, which it cracked last week in the course of the “London” upgrade. On a monthly basis, the second-largest cryptocurrency gained a whopping 64.4 percent, while on a daily basis, ETH prints a gain of around 2.5 percent. Since the end of July, the EMA (9) has presented itself as support for the ongoing Ether rally.

Cardano (ADA) outperforms the top-50 - USD 2 within reachCardano (ADA) outperforms the top-50 - USD 2 within reachCardano (ADA) outperforms the top-50 - USD 2 within reachEthereum price and exponential moving average (EMA, 9d). Source: TradingView

It is likely that the recent gains in the Ethereum price are primarily due to the London upgrade on August 5. With the new base fee accruing and being wiped out on every transaction, Ethereum’s token economy has taken on a deflationary element that is fuelling price fantasies. At the time of writing, 36,495 ETH have already been “burned.” This means that within a week, the equivalent of $114 million worth of ETH has gone into the digital oven. Over the past 24 hours, the burn rate has averaged 3.33 ETH per minute. There have already been moments when the burn rate was higher than the distribution of new ETH to miners; so Ether was already deflationary in the meantime.

A hot autumn awaits

However, deflation comes at a price. A high burn rate means that block utilization, and thus base fees, are particularly high. This in turn means that you have to pay a larger tip to the ETH miners to get your transaction through, making it more expensive overall. Truly low fees are still only available on Ethereum with the help of a second network layer (Layer-2, L2) such as Polygon (MATIC). Cardano, on the other hand, does without the supposed “crutch” of an L2 solution and can scale on-chain. If the project delivers on its promise, it could still be a hot autumn in DeFi space.

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