The Cardano (ADA) price is rebounding on Friday after hitting multi-month lows earlier in the week under $0.45.
The rebound mostly reflects an upturn in prices across the broader crypto market.
Bitcoin (BTC) was up more than 5% in the past 24 hours, as per CoinMarketCap.
The Cardano price was last up by a similar margin.
The rebound in the Cardano price could also reflect strength in an important metric of the Cardano blockchain’s adoption.
As per Cardano Blockchain Insights, the number of smart contracts issued on the blockchain has jumped by more than 10,000 this month.
Decentralized applications built on blockchains rely on smart contracts.
The jump in Cardano smart contract deployment is thus indicative of accelerating dApp building activity.
The Cardano price’s latest rebound confirms that the 100DMA remains a strong area of support.
But price predictions are unlikely to turn substantially bullish until ADA is able to get back above its 21DMA at $0.516.
Cardano Price Prediction – Can ADA Overtake Solana?
For Cardano price predictions to turn bullish, ADA will also likely need to push above its recent short-term downtrend.
If it can manage that, a retest of recent highs in the $0.67 area is a strong possibility.
While Cardano stands a good chance of rallying back to yearly highs, it will be tougher to overtake Solana.
At roughly $40 billion, Solana’s market capitalization is well over double Cardano’s, which was last around $17 billion.
And a quick look at the respective cryptocurrency ecosystems suggests that the difference in valuation is warranted.
As per DeFi Llama, Solana has a TVL of nearly $4.5 billion, over 10 times Cardano’s.
Solana has a stablecoin market cap or nearly $2 billion, also 10 times that on Cardano.
DEX volumes on Solana were over $550 million in the past 24 hours to Cardano’s less than $7 million.
All said the Cardano blockchain will need to see a big increase in use and adoption to stand a chance of overtaking Solana’s valuation.
Crypto Alternatives to Consider
Cardano offers big potential returns but comes with a lot of risk given its lack of adoption.
For those looking for a better probability of near-term gains, an alternative high-risk, high-reward investment strategy to consider is getting involved in crypto presales.
This is where investors buy the tokens of upstart crypto projects to help fund their development.
These tokens are nearly always sold cheaply, and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Here is a list of 15 of what the project deems as the best crypto presales of 2023.
See the 15 Cryptocurrencies
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
This news is republished from another source.
