- Analysts state that a gain of four times the current price and market capitalization would bring Cardano neck and neck with Ethereum.
- Crypto Twitter is abuzz with the possibility of Cardano flipping Ethereum to become the second-largest cryptocurrency.
- A cryptocurrency analyst and entrepreneur, Tai Zen, states that the time taken by Cardano for going from $5 to $10 will be shorter than the time taken to go to $5.
Ahead of the Alonzo hard fork and the launch of smart contract functionality on Cardano, the altcoin’s market capitalization has increased to $92.4 billion. It has replaced BNB as the third-largest cryptocurrency.
Cardano expected to flip Ethereum with 4x rally
Cardano’s market capitalization has increased by over 187% in nearly 30 days. Analysts expect the proof-of-stake blockchain network to surpass Ethereum’s market cap if ADA continues rallying consistently. Independent analyst and YouTube content creator Lark Davis has set a realistic price target of 4x for ADA.
So what is a realistic price target for Cardano long term, say end of the decade?
— Lark Davis (@TheCryptoLark) August 24, 2021
Well a 4X pump would put ADA at the same market cap as Ethereum now = $10 per ADA
10X pump would give ADA same market cap as BTC now = $28 per ada
Davis states that a four-fold rise in Cardano’s market capitalization puts it neck and neck with Ethereum and opens the possibility of a “flippening”. A Cardano analyst behind the Twitter handle @TheADAApe shares how far along ADA has come to flipping ETH.
#cardano flipping #ethereum, status update:$ADA ◽️◽️◾️◾️◾️◾️◾️◾️◾️◾️ $ETH
— ADAape.com || (APE) (@TheADAApe) August 23, 2021
We don't even have smart contracts yet. What do you think happens when the test net projects go live in the coming days? https://t.co/5IyjDunmuK
Analysts expect new smart contract projects and decentralized applications (dApps) to build on Cardano instead of Ethereum.
Once smart contract functionality is live, dApps currently working on the testnet are expected to move on to the mainnet, in addition to new dApps in the ecosystem. In their latest development update shared by the Input Output Hong Kong (IOHK) dev team, working on the Cardano blockchain, the launch of the testnet and mainnet is on track, and smart contract functionality is likely to go live in mid-September.
Further, analyst and entrepreneur Tai Zen believes that the time taken for Cardano to go from $5 to $10 will be shorter than the time taken to go to $5. $5 is considered a psychologically important level for the altcoin.
Time it takes for @Cardano to go from $5 to $10 will be a much shorter period of time than going from $0.05 to $5.
— Tai Zen (@HeyTaiZen) August 23, 2021
Also, the time to go from $10 to $20 will be even shorter than from $5-$10.
Why?
$5 is a "magic" #. Once $ADA cracks $5, people will magically start to FOMO in!
A four-fold increase in ADA’s market capitalization is likely to flip Ethereum. Exceeding ETH’s market capitalization would make ADA the second-largest cryptocurrency by market capitalization, behind only Bitcoin.
Cardano currently does not have a burn mechanism in place, unlike Ethereum. Cardano’s founder Charles Hoskinson is against instating burn to create artificial deflation and supply shock to drive the altcoin’s price higher.
Based on analysts’ views, Cardano has a stronger community relative to Ethereum. While ETH has a total value locked (TVL) of $114 billion from the trade volume on peer-to-peer non-fungible token marketplaces and decentralized finance applications, Cardano is yet to host dApps on its blockchain.
Overall, Cardano flipping Ethereum depends on the work by Cardano developers and community post-launch of smart contract functionality on mainnet. The altcoin is gearing up for a 400% breakout.
Analysts at FXStreet expect ADA to hit $3.50 as the altcoin shows strength on the daily price chart.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.