A famous cryptocurrency analyst has suggested that Cardano ($ ADA) may soon begin to outperform flagship cryptocurrency Bitcoin ($ BTC) as traders start using cryptocurrency to protect themselves from Ethereum’s transition from a Proof-of- consensus algorithm. Work (PoW) to a Proof-of-stake (PoS) one.
According to the Coin Bureau host, who shared a video updating its 2.1 million YouTube subscribers on the cryptocurrency market, smart contract platforms other than Ethereum – such as Cardano, Solana and BNB Chain – can be seen as one. hedging against the upcoming Ethereum major update, the merger.
The Ethereum Merger describes the current merging of the network’s core network with Beacon Chain’s PoS system, setting the stage for future scaling upgrades, including sharding. The move is expected to reduce Ethereum’s energy consumption by 99.95%.
The move away from PoW is said to make the network cheaper, faster and more environmentally friendly, however, it will also spell the end of a revenue stream for Ethereum miners who have been rewarded for securing the network.
For the Coin Bureau host, hedging against Ethereum merging involves adding competing smart contract networks to its portfolio, including ADA, as the token works to hedge while also expecting its own upgrade in the near future. , the Vasil hard fork.
The Vasil hard fork is a major update involving four Cardano Improvement Proposals (CIPs). The hard fork was supposed to be implemented at the end of June, but was delayed due to the collapse of Terra, as the team behind it wanted to pay attention before shipping the update.
Cardano creator Charles Hoskison said the hard fork will offer a “huge performance improvement”. For the Coin Bureau host, it would be a “certainly strategic move if Cardano improves its scalability as Ethereum moves to Proof-of-Stake”, since “it would put Cardano in a perfect position to acquire users and investors if The Merge fails or simply fails to meet the expectations of ETH holders ”.
The host, as the Daily Hodl noted, added that Cardano looks poised to overtake major cryptocurrencies, including BTC.
ADA appears to be lagging behind for an appreciation against BTC on the weekly chart. This is because ADA has historically fallen against ETH for around eight weeks before seeing a multi-week rally. As you can see, ADA has been down against ETH for about eight weeks and is showing signs of reversal.
The analyst added that Cardano’s appreciation against BTC does not necessarily mean it will rise in terms of fiat currency, although he expects it to do so by at least 50% in the coming weeks.
He pointed out that these gains are ultimately tied to the cryptocurrency market which sees a recovery in the near future. According to the analyst, the Cardano hard fork will also expose the project to “the same kind of problems that Ethereum could encounter during the update”.
In his words, other smart contract networks, including Solana, also appear to be “on the verge of a bigger breakup against both ETH and USD” prior to the merger.
Featured image via Sprinkle