Crypto markets go through severe volatility cycles, usually every 4 years. As time goes by, the builders in the space improve the technology and more optimal solutions. For instance, converting NEO to GAS was extremely popular during the last cycle.
However, the top cryptos from one cycle become less appealing over time and fall out of the spotlight.
In this article, we take a look at EOS and Cardano. This will allow us to assess whether these projects still have any upside opportunities.
To this end, we will take a look at their fundamentals and their future updates. This should allow us to better compare them to each other, but also to the stark competition in the industry.
What Is ADA?
Cardano is a smart contract-capable blockchain that attempts to solve the ever-lasting blockchain trilemma. For those less familiar with the subject, a blockchain should optimally be at the same time scalable, secure, and decentralized.
However, until now, most major projects have been forced to compromise in at least one of these characteristics. Charles Hoskinson, the creator of Cardano, believes that his approach to blockchain technology can solve this issue.
To achieve this, Cardano uses the novel Ouroboros consensus mechanism. This proof-of-stake variation algorithm allows provable security in addition to scalability. Cardano reaches decentralization through a high amount of holders staking the ADA token on the network.
On this blockchain, anyone can participate in the consensus mechanism by staking their ADA and delegating them to one of the validators. This ensures that holders are properly rewarded for their stake, and validators remain honest in their work.
Finally, it’s worth noting that Cardano is the only network that relies on scientific peer-reviewed research instead of a whitepaper. This ensures that the best thinking heads in the industry have provided their insight regarding its developments and improvements.
The ADA token is capped at a 45,000,000,000 maximum supply, with 36 billion tokens in circulation. During the 2021 bullish cycle, ADA reached the top 3 in market cap, surpassing behemoths like BNB and USDT in valuation.
It’s worth noting that while ADA reached a good valuation, the network usage remains very low.
What Is EOS?
EOS is one of the first layer-1 to openly try to compete with Ethereum. The project aims to provide high scalability, security, and smart contract capability. It uses the EOS virtual machine to process smart contracts, which leverages a different technology than EVM networks.
Released in 2017, EOS held a record-breaking ICO and managed to raise $4.2 billion dollars. The promise that EOS could beat Ethereum at its own game attracted hundreds of thousands of investors who believed the hype.
However, the bear market of 2019 proved to be an extremely challenging period for EOS. The team never really delivered on their promises and barely had a functional development platform. With the release of highly scalable layer-1 blockchains like Cardano, Solana, and Avalanche, EOS has lost a lot of its appeal for investors and builders.
The EOS token doesn’t have a capped maximum supply, and there are 1,106,795,197 EOS in circulation at the time of writing.
ADA vs EOS Comparison
Below, we provide you with an ADA vs EOS comparison table that should give you a good idea of their main fundamental characteristics.
|Ouroboros (Proof of Stake)
|Delegated Proof of Stake
|High (3,577,963 holders)
|High (6,036,752 holders)
|Adoption and Development
|Low adoption; only 45 dApps
|Decent adoption; 500+ dApps
ADA vs EOS: Investors Choice
With all the information we shared in this article, you should have a good idea of which of these cryptocurrencies has better potential.
Cardano has a very strong community, even though the project has been lagging in delivering actual products.
On the other hand, EOS is struggling against EVM chains that propose a better developing environment.
In either case, both tokens are at a very low price and should provide a good upside opportunity in the next bullish cycle.
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The bottom line
The debate of ADA vs EOS as a better investment choice hinges on a variety of factors including technological advancements, market adoption, community support, and long-term potential.
While ADA (Cardano) boasts a strong scientific foundation and a growing network, EOS offers scalability and developer-friendly features.
Investors should consider their investment goals, risk tolerance, and the evolving landscape of blockchain technology before making a decision.
Both cryptocurrencies have their unique strengths and potential challenges, and the choice ultimately depends on individual investor preference and the alignment with their investment strategy.
Staying informed and adaptable in the rapidly changing crypto market is key to making a wise investment decision.