Cryptocurrency

Cardano vs Solana: Difference Between ADA & SOL

Cardano VS Solana: Difference Between ADA & SOL

Introduction

The world of cryptos has been swelling rapidly over the past two years attracting many onto the platform. And hence due to huge attention and adoption, cryptos are now considered one of the good investment options. Among the thousands of cryptos in the market, Cardano & Solana have marked their presence hard, claiming to be the ‘Ethereum-Killers’ which compel the traders to think,

“Which is the better investment option?” Let’s dive deep and figure out a suitable response!


Key Takeaways

  • Cardano & Solana’s price despite a bullish close, the previous day, fell into a deep bearish well squeezing most of the profits gained 
  • Both the assets being in the top 10 crypto assets can be considered for investment while the price actions may differ as on-time
  • ADA & SOL prices may undergo a bullish divergence once the market sentiments get eased a little

What is Cardano

After Bitcoin & Ethereum, Cardano is the third-generation, decentralized Proof-of-Stake(PoS) blockchain. The platform aims to address the issues related to Scalability, interoperability, and sustainability by being cost-effective, and environment-friendly with high throughput. 

The blockchain is been built in five stages namely, Foundation, Decentralization, Smart-Contracts, Scaling & Governance.   The native token of the Cardano blockchain is ADA which is named after 19th-century mathematician Ada Lovelace. 

Unique Features Of Cardano

  • Cardano blockchain follows a layered architecture and is composed of 2 main elements, The Cardano Settlement Layer(CSL) & The Cardano Computational Layer (CCL). These interoperate and communicate easily while performing their functions. 
  • The key feature of the Cardano blockchain is its Ouroborous PoS which divides the time into epochs. Each epoch is handled by a set of validators and they are rewarded with ADA tokens
  • The platform claims to have a higher degree of decentralization as anyone can become a node validator on Ouroborous

In a major update for the Cardano blockchain network, engineers at IOHK had successfully hard forked the Cardano testnet with the Vasil upgrade. This Vasil Hard Fork is basically the part in its plan to improve upon the scalability and speed of the network. Thus this effort brings the project another step closer to dethroning the largest smart contract and DeFi platform out there – Ethereum. With this latest upgrade, Cardano’s developers hope to improve the efficiency of smart contracts to make Cardano cheaper and faster to use.

Additional Read: Cardano Vasil Hard Fork

What is Solana

Solana is a decentralized, layer-1 blockchain that facilitates more transactions per second at a low cost, operating both on Proof-of-Work(PoW) & Proof-of-Stake(PoS) mechanisms. While PoS permits validators to validate the transactions, PoW enables the transaction to be timestamped. 

The public blockchain, Solana also has a smart contract capable of giving a throughput of more than 71,000 transactions per second, becoming one of the most used blockchains in recent times.

Additional Read: Proof of Stake vs Proof of Work

Unique Features of Solana

  • Solana blockchain is built to scale as it boosts a minimum of 50,000 TPS which is about 3000 times that of Ethereum and 10,000 times of Bitcoin at very affordable rates
  • Numerous NFTs are purely dependent on SOL blockchain which witnessed significant growth in the past 10 months
  • Solana’s 8 core innovations have kept it away from the crowd which includes BFT & PBFT mechanisms, Turbine, Gulfstream, Sealevel, Pipelining, Cloudbreak, & Achievers. 

Unfortunately, Solana has been one of the blockchain networks that has suffered multiple major attacks leading to major loss of funds from time to time. Very recently, nearly 8000 Solana based wallets were hacked that resulted in a loss of over $5 million in SOL crypto and USDC tokens in a matter of a few hours.

Read all about this hack: Solana Wallets Hacked

Cardano Vs Solana: Comparison 

Comparison Basis  Cardano  Solana
Launch date  27-September-2017 16-March-2020
Founders Charles Hokinson Anatoly Yakovenko
Blockchain protocol  Ouroborous Protocol BFT & PBFT- these are fault tolerance mechanisms
Token type  ADA SOL
Use case Smart-Contract, NFT, DApps & Crypto supported Smart-Contract, NFT, DApps & Crypto supported
Market Cap* INR 1.30 trillion INR 1.04 trillion
Circulation Supply** 33.74 billion ADA 342,508,447.06 SOl
Consensus method Proof-of-Stake(PoS) Proof-of-Stake & Proof-of-Work
Twitter  https://twitter.com/InputOutputHK https://twitter.com/solana

Pros & Cons of Cardano & Solana

Pros

Cardano  Solana
Peer-to-peer, decentralized technology Fast Transaction speed and Low Fees
Highly scalable and interoperable Home for Smart Contracts & NFTs
Cardano is environmental friendly Solana is environmental-friendly unlike Bitcoin
Does not get influenced by hype or criticism in the market rather focuses on the development Attractive Staking Rewards

Cons

Cardano  Solana
Cardano is still in the development phase Low Network Stability
Is building the features which the other chains already posses Limited projects built on Solana
Low adoption rate Solana has now fixed supply hence is an inflated asset
75% of ADA is not in circulation but staked Solana is speculated to be less decentralized

Cardano Vs Solana Crypto Price 

How High Cardano ADA Price Will Go in 2022?

Cardano is trading with extensive bearish pressure. Slight upswing results in a massive plunge squeezing out all the gains incurred. Currently, ADA price has dropped below INR 40 and testing the crucial support at INR 34

Here a rebound is required to raise the price back above INR 50. If the asset flips the bearish divergence, then it may set up a strong upward trend in the second half of 2022 to reach beyond a 3-digit figure. Else continue to hover between INR 60 to INR 75 by the end of the year. 

How High Solana Crypto (SOL) Price Will Go in 2022?

The Solana crypto price is attempting to rebound from the lower support by sustaining strong above INR 2000. The SOL price is required to test and clear the crucial resistance at INR 4200 to set a bullish trade for the rest of the year. 

The crypto asset if continues to trade within the bearish captivity may possess less volatility and the upper target may remain capped below INR 6000. However, if the bulls take over the rally, then a higher possibility of the price smashing INR 10,000 emerges by the end of 2022. 

Cardano vs Solana Technical Analysis

Source: Tradingview

  • Cardano & Solana prices are consolidating within a narrow range ever since the asset slipped down notably, a couple of days before
  • However, ADA price appears to be pretty firm as after a significant consolidation, the asset spikes high regaining the lost levels.
  • On the other hand, Solana crypto price is maintaining a constant descending trend forming lower highs and lows
  • ADA price is feared to drop slightly as it is trading within a bearish triangle, however, after a retest, the prices are expected to regain INR 50 quickly
  • While SOL price has gained enough bullish momentum and may hit the required target at around INR 4500 shortly
  • Interestingly, both the asset appears to be poised to hit the upper targets, but ADA may breakdown due to less buyer activity.

Additional Read: Cardano Price Prediction 2022, 2023, 2024, & 2025

Should You Buy Cardano or Solana

Cardano & Solana has displayed a significant bullish trend throughout the year 2021 since the beginning As Cardano is a couple of years elder than Solana, it could hold some advantages of being more experienced. On the other hand, Solana’s fast transactions and capability to process a minimum of 60,000 TPS could attract more traders. 

Considering the upcoming trend, SOL price is expected to recover more quickly than ADA as the market sentiments flip to bullish. However, ADA crypto price always follows s slow & steady approach that may hold the support levels firmly. Therefore, both the assets carry their advantages and strengths which can be considered depending on the length of the investment. 

Tips for Trading Cardano or Solana Crypto

  • Before entering into any trade, it is advised to follow the price patterns and movements for a significant time, post to which the upcoming trend may be speculated
  • Cardano and Solana, being the popular crypto-assets are widely available on all the major platforms including ConDCX
  • The traders are required to comply with the KYC rules and hence it is better to verify your profile to carry out smooth trades with attractive benefits
  • Keep a close watch on the market sentiments and the updates & developments on Cardano & Solana chain as they may impact the prices to a larger extent. 

How to Invest in Solana or Cardano Crypto

Cardano & Solana crypto can be easily bought here on CoinDCX along with the best deals in the market. Just download the CoinDCX App crypto investing app, enter the details required and wait for your profile to get verified. Once done, fund your wallet and buy Cardano and/or Solana. Moreover, with Crypto Investment Plan(CIP) you can invest in easy weekly installments too. 

*Prices and Data as of 5th August June, 2022


Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].

The above information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational & educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, virtual digital assets/ crypto products or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as a legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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