Friday, December 9, 2022

Cardano vs Solana: Here’s Why SOL is a Better Buy than ADA

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Cardano and Solana price have been in a strong bearish trend in the past few months. SOL is trading at $35.40, which is about 86% from its all-time high. ADA, on the other hand, is trading at $0.4782, which is about 82% below the highest point in 2021. The two have a market cap of over $12 billion and $15 billion, bringing the combined value to $27 billion. This means that the two have lost over $100 billion in value.

Cardano vs Solana

Solana and Solana are Ethereum rivals that make it possible for builders to create quality decentralized applications. Their use-case are projects like those in decentralized finance (DeFi), non-fungible tokens (NFT), and the metaverse among others.

The two have better features for building Web3 applications than Ethereum. For example, they are incredibly faster, have a lower carbon footprint, and significantly lower transaction costs. So, which is a better platform between Solana and Cardano?

There are two main reasons why Solana is a better investment compared to Cardano. First, Solana has a bigger ecosystem of applications. Some of the top apps built using Solana’s technology are Basic Attention Token (BAT), StepN, Squads, and Hoglytics. 

Learn more about how to buy Cardano.

Indeed, according to CryptoSlam, Solana is the second-biggest player in NFTs after Ethereum. And according to DeFi Llama, Solana has a total value locked of over $2.57 billion while Cardano has a TVL of less than $200 million. 

Second, Solana is a good investment because of its valuation. While it is hard to determine the ideal valuation of smart contract platforms, there are signs that Cardano is still overvalued. Besides, this is a cryptocurrency that is valued at over $15 billion that has no major application.

Cardano developers have said that thousands of projects are upcoming. Still, there is no evidence that these projects will ultimately be successful.

Solana price prediction

The chart below shows that the Solana price has been in a strong bearish trend in the past few months. As a result, the coin has dropped below the 25-day and 50-day moving averages while the MACD has moved below the neutral level. 

It is also staring at its lowest level this year. Therefore, there is a likelihood that Solana will continue falling in the coming days. If this happens, the next key support level to watch will be at $25. In the long-term, however, there is a likelihood that the price will bounce back.

It is worth noting that Solana and Cardano have a close correlation. Therefore, in this price-discovery phase, the coins will likely track each other.

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