In the first week of July, discussions comparing Cardano and Ethereum became the most talked-about in the market due to ADA's recent rise. However, a longer-term analysis shows that Cardano still lags behind Ethereum.
Price Dynamics of Cardano and Ethereum
In early July, Cardano (ADA) showed a 7% intra-day increase while Ethereum (ETH) rose by 5%. The ADA/ETH ratio chart indicates a 13% decrease since April, reflecting a stark divergence in performance for Q2: Ethereum ended the quarter up 36%, while Cardano closed it in the red.
Development and Network Activity
GitHub data shows that Cardano ranks fourth in developer commits for June, nine spots ahead of Ethereum. The comparative development activity score stood at 2.29 for Cardano and 0.74 for Ethereum. Meanwhile, the number of active Cardano addresses increased by 24.6% week-on-week, while Ethereum saw a 14% drop to 453k addresses.
Prospects and Forecasts
The growing interest in Cardano is based on three key factors: an increase in the number of active addresses, the rollout of Hydra and Mithril upgrades, and the existing valuation gap compared to Ethereum. Recent forecasts suggest that the ADA/ETH dynamics could improve if on-chain activity remains high.
Observing the developments from both projects, one can conclude that despite Ethereum's current dominance, Cardano stands out with significant development and potential growth catalysts. The market situation could shift its focus in the coming months.
