Cardano offers greater return, but Ethereum’s volume is still greater
The rapid growth of the Cardano ecosystem is rewarding for users as it is possible to use rewards and incentives earned at Cardano to purchase other assets within the ecosystem. From AMM, liquidity, IDO to lending’ and borrowing’, there are several assets for traders to hold their assets.
1. Hold pattern
While most altcoins tried to make a rally, Cardano’s price has risen over 15% since last week and this is one of the fastest rallies this week. The launch of its test network had an even more positive impact on the price of altcoin. Cardano’s market capitalization was up to $71 billion and the concentration of large HODLers was 24%.
Of these, 69% of HODLers were profitable at the current price level. The network supported more than $69.7 billion in large transactions last week and investment inflows increased by 3%. These signs support the optimistic narrative.
Based on the chart above, since the beginning of May 2021, there have been shorts liquidation peaks, as opposed to the beginning of 2021. On May 29, 2021, more longs were liquidated than shorts. With the recovery of outstanding contracts, Cardano’s recovery is likely to continue for a long time. In the case of Ethereum, the current narrative is bullish, with the share rising 10% last week.
3. Feeling on-chain
When ‘ETH exchange volume’ exceeded BTC several times this week, the narrative shifted to a long-term high. However, unlike ETH L2 scaling solutions, Cardano is competing with Ethereum, with growing demand and upbeat sentiment in the chain. Cardano emerged as a competition for Ethereum with its collection of projects and assets for traders to invest in, although the ‘ETH exchange volume’ is higher.
The current altcoin season is led by specific altcoin rallies, however, as ETH and BTC are recovering, in terms of volatility and price, projects like Cardano and Polkadot are more likely to outperform ETH. Cardano is racing for the top, unlike most other altcoins, and against Ethereum. In 2o18, during the previous bull run, it would have been a challenge to see Cardano and its ecosystem as a competition against Ethereum, however, in the current bull run, Cardano has a 30% ROI in 90 days.