Can Cardano displace Ethereum?
Cardano is one of the preferred cryptocurrencies with long-lasting staying power. Its ADA coin sits comfortably in the top ten cryptocurrencies ranked by market capitalisation. It’s actually been in this top ten ranking since its launch in 2015. Today it’s in sixth place after Bitcoin, Ethereum, Binance Coin, XRP and Tether. But the landscape is volatile, and only a few weeks ago it was in third place. So things change rapidly.
Cardano blockchain – Photographer: fabio | Source: Unsplash
What is Cardano?
Cardano certainly has several good things going for it. Its technology is superior to many of its peers, and it has strong community backing.
ADA is the digital currency associated with the Cardano platform. It’s named after Ada Lovelace, the world’s first computer programmer.
IOHK (Input Output Hong Kong) is the research lab behind Cardano. Its focus is on decentralization and the challenges it poses to existing global financial systems. The Cardano development team are academics and scientists, and they work closely with academia to have everything peer-reviewed and transparently shared. The Cardano Foundation and EMURGO, along with IOHK govern Cardano.
Is ADA a coin or a token?
ADA coin is the name of the cryptocurrency that’s used on the Cardano platform. But ADA tokens can be used to vote or for staking in the Cardano ecosystem.
Within digital currency wallets, such as Exodus or Daedalus, you can easily stake Cardano ADA for rewards. Once you stake your ADA coin, it becomes an ADA token, which is then used to mine for ADA. If you find some, you’re rewarded with a stake.
Staking is a popular practice among altcoin owners. It is the proof-of-stake (PoS) part of the blockchain network that Cardano is striving for. And this is being developed into a decentralised application (DApp) development platform, complete with multi-asset ledger and verifiable smart contracts.
Last month Graph Blockchain Inc. (CSE: GBLC) invested $300,000 into Cardano for the purpose of staking the ADA coin.
Meanwhile, over half a billion US dollars worth of ADA is currently being delegated to charity-focused initiatives on Cardano through mission-driven stake pools.
Cardano is for the greater good! We are delighted to share that over US$500,000,000, yes, half a billion U.S. dollar worth of ada is currently being delegated to charity-focused initiatives on Cardano through mission-driven stake pools.
Read more https://t.co/9l55kBRGtv — Cardano Foundation (@CardanoStiftung) March 31, 2021 Cardano’s charitable focus – Staking ADA for charity
Why Cardano could replace Ethereum
Cardano is a smart contract platform, as is Ethereum and Polkadot. Many die-hard Cardano fans believe it will eventually displace Ethereum thanks to its high-speed tech and fee free transaction setup.
Ethereum’s value has soared this past year as more high-profile clients jump aboard. Ethereum is also the backbone of the non-fungible token (NFT) marketplace, which has been subject to NFT mania this year, further boosting the Ethereum price.
And Ethereum is also profiting from notable decentralized finance (DeFi) projects which are built on its blockchain. However, Ethereum is expensive to use, and its transaction times suffer from lag. Cardano intends to beat it on both these counts, due to its lightweight design.
Cardano recently undertook a major update called ‘Mary’ which took it a step closer to emulating Ethereum. The Mary upgrade is a hard fork, transitioning the Cardano ledger. This changes its capabilities from simply holding ADA on its blockchain to allowing multiple tokens to be created and exchanged.
WE’RE ON!! We can today confirm that the ‘Mary’ #Cardano protocol update is now fully confirmed for March 1st.
Another key milestone in the #Goguen rollout, the update introduces native tokens & multi-asset support, bringing exciting new use cases for #Cardano 1/3 pic.twitter.com/FFK0cGNbmD — Input Output (@InputOutputHK) February 24, 2021 Cardano’s Mary hard-fork Goguen rollout
This allows it to support stablecoins and users to create NFTs.
Who founded Cardano?
Cardano was in fact founded by none other than one of Ethereum’s original co-founders. Charles Hoskinson stepped out on his own a year after Ethereum was launched in 2013.
He believes Cardano has the potential to help billions of people thanks to its laser focus on the vision of helping people achieve a better quality of life. By building Cardano on DeFi, it’s targeting some of the poorest, hardest hit regions of the world. Hoskinson believes that proving the technology works in places that are close to being deemed a lost cause, will allow its success to speak for itself. This should naturally bring mass adoption elsewhere.
Access to fair and transparent banking has the power to lift millions of people out of poverty to a sustainable level of living. However, with no access to electricity or smart phones then using crypto is impossible. That said, there are many areas of the world where it could make a real difference. So, the kind of customer Cardano is targeting may be a farmer in Ethiopia looking for a way to pay for fertiliser. Or on a larger scale, implementing a fair election process in Senegal. The company has people in these African countries working with the locals to move forward with its vision.
ADA’s price fluctuations
ADA’s price is up 16% in a month and an eye-popping 3,557% in a year.
So what makes its popularity stick? There are three principal reasons. Being widely available to trade is a big one. Coinbase began supporting Cardano (ADA) in mid-March and around the same time, it appeared on the Bloomberg Terminal. This has certainly helped boost its popularity. With a market cap above £40m, it’s also a highly liquid market and institutional investor interest is readily growing.
Ethereum is up 115% year-to-date. Meanwhile, ADA is up 517% year-to-date.
Cardano is operating a low fee, secure, trusted, blockchain system. It aims to provide a balanced and sustainable ecosystem. So, while this continues, Cardano’s ADA is likely to remain a popular cryptocurrency easily rivaling Ethereum and Polkadot.
Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – April 7th, 2021
Ethereum
Ethereum rose by 0.26% on Tuesday. Following a 1.48% gain on Monday, Ethereum ended the day at $2,113.00.
A bullish start to the day saw Ethereum rise to an early morning intraday high and a new swing hi $2,151.00 before hitting reverse.
Coming within range of the first major resistance level at $2,158, Ethereum fell to an early afternoon intraday low $2,046.08.
Steering clear of the first major support level at $2,030, Ethereum revisited $2,130 levels before easing back.
At the time of writing, Ethereum was up by 0.61% to $2,125.85. A mixed start to the day saw Ethereum fall to an early morning low $2,109.39 before rising to a high $2,125.85.
Ethereum left the major support and resistance levels untested early on.
For the day ahead
Ethereum would need to avoid a fall through the pivot level at $2,103 to support a run at the first major resistance level at $2,161.
Support from the broader market would be needed, however, for Ethereum to break out from Tuesday’s new swing hi $2,151.00.
Barring an extended crypto rally, the first major resistance level would likely cap any upside.
In the event of a breakout, Ethereum could test resistance at $2,200 before any pullback. The second major resistance level sits at $2,208.
Failure to avoid a fall through the $2,103 pivot would bring the first major support level at $2,056 into play.
Barring an extended sell-off, however, Ethereum should steer clear of the second major support level at $1,998.
Looking at the Technical Indicators
First Major Support Level: $2,056
Pivot Level: $2,103
First Major Resistance Level: $2,161
23.6% FIB Retracement Level: $1,662
38.2% FIB Retracement Level: $1,360
62% FIB Retracement Level: $872
Litecoin
Litecoin rose by 7.08% on Tuesday. Following on from a 9.48% rally on Monday, Litecoin ended the day at $237.09.
A mixed start to the day saw Litecoin rise to an early morning high $227.58 before hitting reverse.
Falling short of the first major resistance level at $232, Litecoin slid to an early afternoon intraday low $213.00.
Story continues
Steering clear of the first major support level at $205, Litecoin bounced back to strike a late afternoon intraday high $244.54.
Litecoin broke through the first major resistance level at $232 and the second major resistance level at $242.
Coming within range of February’s swing hi $247.00, Litecoin eased back to end the day at sub-$240.
At the time of writing, Litecoin was up by 2.06% to $241.98. A bullish start to the day saw Litecoin rise from an early morning low $237.05 to a high $242.00.
Litecoin left the major support and resistance levels untested early on.
For the day ahead
Litecoin would need to avoid a fall through the $232 pivot level to support a run at the first major resistance level at $250.
Support from the broader market would be needed, however, for Litecoin to break out from February’s swing hi $247.00.
Barring an extended crypto rally, the first major resistance level would likely cap any upside.
In the event of an extended rally, Litecoin could test resistance at $270 before any pullback. The second major resistance level sits at $263.
Failure to avoid a fall through the $232 pivot level would bring the first major support level at $219 into play.
Barring an extended sell-off, Litecoin should steer clear of sub-$200 levels. The second major support level at $200 should limit the downside.
Looking at the Technical Indicators
First Major Support Level: $219
Pivot Level: $232
First Major Resistance Level: $250
23.6% FIB Retracement Level: $195
38.2% FIB Retracement Level: $163
62% FIB Retracement Level: $110
Ripple’s XRP
Ripple’s XRP rallied by 19.75% on Tuesday. Following Monday’s 44.06% surge, Ripple’s XRP ended the day at $1.0970.
A mixed start to the day saw Ripple’s XRP fall to an early morning intraday low $0.80542 before making a move.
Steering clear of the 23.6% FIB of $0.7584 and the first major support level at $0.7098, Ripple’s XRP surged to a late morning high and a new swing hi $1.09888.
Ripple’s XRP broke through the first major resistance level at $1.0292 before sliding back to sub-$0.90 levels.
Finding late support, however, Ripple’s XRP broke back through the first major resistance level to strike a new swing hi $1.1196.
Falling short of the second major resistance level at $1.1440, Ripple’s XRP eased back to end the day at sub-$1.10 levels.
At the time of writing, Ripple’s XRP was down by 2.24% to $1.0725. A mixed start to the day saw Ripple’s XRP rise to an early morning high $1.1114 before falling to a low $1.0496.
Ripple’s XRP left the major support and resistance levels untested early on.
For the day ahead
Ripple’s XRP will need to avoid a fall through the $1.0073 pivot level to bring the first major resistance level at $1.2093 into play.
Support from the broader market would be needed, however, for Ripple’s XRP to break out from Tuesday’s new swing hi $1.1196.
Barring an extended crypto rally, the first major resistance level would likely cap any upside.
In the event of an extended rally, Ripple’s XRP could test resistance at $1.30 levels before any pullback. The second major resistance level sits at $1.3215.
Failure to avoid a fall through the $1.0073 pivot would bring the 23.6% FIB of $0.8960 and the first major resistance level at $0.8951 into play.
Barring an extended sell-off, however, Ripple’s XRP should steer well clear of the 38.2% FIB of $0.7577. The second major support level sits at $0.6932.
Looking at the Technical Indicators
First Major Support Level: $0.8951
Pivot Level: $1.0073
First Major resistance Level: $1.2093
23.6% FIB Retracement Level: $0.8960
38.2% FIB Retracement Level: $0.7577
62% FIB Retracement Level: $0.5340
Please let us know what you think in the comments below.
Thanks, Bob
This article was originally posted on FX Empire
More From FXEMPIRE:
Ripple’s win forces SEC to reveal internal documents on Bitcoin and Ethereum
Ripple Labs has been granted access to the Securities & Exchange Commission ’s internal communication.
The regulator previously stated that Bitcoin and Ethereum were not deemed securities.
The judge in the case said that this discovery hearing was a “high-stakes” win for Ripple.
Ripple Labs won in a discovery hearing that would force the Securities & Exchange Commission (SEC) to hand over its internal documents on Bitcoin and Ethereum. The XRP price has since risen 23.4% in the past 24 hours, trading above $1 at the time of writing.
SEC to hand over documents on Bitcoin and Ethereum
The SEC accused Ripple Labs and its executives of offering an unregistered security — XRP — in December 2020. The securities regulator alleged in the $1.3 billion lawsuit that Ripple illegally earned over $600 million by selling the digital currency.
In a previous discovery hearing, US District Court Judge Sarah Netburn dropped a bombshell statement, saying that her understanding of XRP is not only that it has value but also utility.
Former SEC Chairman Jay Clayton and former Director of Enforcement Willian Hinman both claimed that the regulator does not consider the two largest cryptocurrencies to be securities. The SEC has not detailed how it has come to this conclusion.
Ripple Labs and its co-defendants, CEO Brad Garlinghouse and Executive Chairman Chris Larsen, filed a motion on March 15 to request the SEC to bring forward documents regarding the regulator’s internal communication on Bitcoin and Ethereum.
The securities regulator stated that Bitcoin and Ethereum were not securities offerings, US District Court Judge Sarah Netburn reiterated. She added:
For almost a decade, the SEC watched as XRP grew and developed, all the while issuing no formal guidance that its sales may be illegal.
Ripple is seeking to find documents where XRP is mentioned by the SEC as a “virtual currency,” similar to Bitcoin and Ethereum. The internal communication documents may also show the SEC’s criteria for determining which digital assets are and are not deemed securities, which could help the blockchain firm make its case.
Judge Netburn said it was a “high-stakes” discovery win for Ripple, as she ruled in favor of the defendant. She added that documents such as meeting minutes and internal memos “expressing the agency’s interpretation or views” on cryptos would be included in the order, however, leaving out internal staff emails.
Why are Bitcoin and Ether relevant?
Attorney John Deaton, who led the motion to intervene in the SEC v. Ripple case, highlighted the importance of the decision a prosecutor makes at the beginning of who to charge and what to charge. Clayton favored going after the individual executives of Ripple, not just the company.
Deaton, who is familiar with the case, figured that if the SEC only sued Ripple, it would only be a strict liability case — where the securities regulator would only need to prove that XRP was a security when Ripple sold it.
However, since the SEC went after the two executives, the regulator needs to prove that Garlinghouse and Larsen “knew or recklessly disregarded that Ripple’s sales of XRP required registration.”
Bitcoin and Ethereum are further relevant to the case as the former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo authored an article stating that XRP is not a security and that it is a commodity. Current CFTC chairman Heath Tarbert said in January 2020 that:
We’ve been very clear on Bitcoin: Bitcoin is a commodity. We haven’t said anything about Ether — until now. It is my view as chairman of the CFTC that Ether is a commodity.
Deaton said, “If the former CFTC Chairman stated affirmatively that XRP is a commodity and the then-current CFTC Chairman said officially ETH is a commodity, it’s certainly reasonable to assume that XRP is not a security.”
He further claimed that Clayton — who filed the lawsuit against Ripple Labs on his last day — and his crew were “arrogant bureaucratic bullies” who wanted to either “send a message” or did so for other personal reasons.
Ripple issued a subpoena to Clayton at his new place of employment for any communications related to cryptocurrencies, not limited to Bitcoin, Ethereum and Ripple.