The cryptocurrency market has been undergoing continuous evolution for a decade now. However, things intensified in 2021 and investors are shifting their focus from bitcoin to other well-performing digital tokens like Cardano. The trio is gaining more traction than ever before and they are also unraveling disruptive ways to drive them to the top. Cryptocurrency investments are not easy. They are highly speculative investments and involve severe volatility. Therefore, before jumping into the crypto sphere, make sure it is apt for you. Besides, prepare yourself for anything that comes your way. 2022 has not been a great year for famous cryptos like Cardano vs Dogecoin, but crypto experts predict that both have immense potential to reach US$1. Why? Dogecoin has the potential to sweep the market in a single go with a tweet. On the other hand, Cardano is arguably the most sophisticated blockchain on the market with a peer-reviewed and multi-layered smart platform that supports numerous DeFi, Daaps, and other smart capabilities. When it comes to reaching US$1, both the cryptocurrencies are in the race but which one will be the first?
Cardano vs Dogecoin: Which cryptocurrency will reach US$1 first?
Both crypto assets show potential in terms of blockchain development. Hence, it is up to traders and investors what to pick as the best crypto to buy before 2023. However, it is recommended to first study cryptocurrency prior to investing in it to avoid losses that cannot be recovered.
Dogecoin to Reach $1?
According to the current trend, the Dogecoin to reach $1 seems possible before the end of 2023.
Dogecoin has proven to be popular among home traders as it continues to rack in community members. The coin is very popular among social media users, especially on Reddit.
This is despite the fact that Dogecoin has experienced greater volatility levels than other mainstream cryptocurrencies. The volatility mostly stems from its online popularity and frequent mentions from celebrities like Elon Musk.
To understand whether or not Dogecoin to reach $1 in 2023, we would usually have to look at several traditional factors that cut across the board when it comes to evaluating the strength of cryptocurrencies. These include the current price action, use case, blockchain protocols, development team, and the circulating supply.
All these factors apply to Dogecoin and can help us determine whether the coin’s price will keep rising this year. However, Dogecoin has other unique factors that have significantly helped in its growth.
These include the active online community and support from celebrities. If these two parties are consistent with their support for the rest of the year, Dogecoin might hit $1 sooner than we expect.
In May 2021 the brokerage firm eToro announced that it would be adding Dogecoin to its listings due to growing demand from users. With over 20 million users around the world, eToro’s support for Dogecoin might inadvertently help it reach $1 soon enough.
Additionally, several experts have predicted the Dogecoin coin might go above $1 by the end of this year. For instance, Carol Alexander, a professor of finance at the University of Sussex, expects that Dogecoin will keep rising largely due to the active online community and support from public figures.
InvestorPlace also predicts that Dogecoin might not only reach but also stay at $1. According to the price analysis platform, the huge amount of Dogecoin in supply means more people are likely to invest and help drive its price up. The website also believes that the renewed interest in DOGE will help it reach $1 sooner.
On the other hand, some believe that Dogecoin will more likely fall than rise after the earlier surge. In an interview with CoinTelegraph, Kadan Stadelmann, a CTO at blockchain solutions provider, Komodo said that Dogecoin would unlikely reach $1 any time soon.
According to Stadelmann, the recent public support and adoption by celebrities like Mark Cuban and Elon Musk should have been able to shoot the price to above $1. Stadelmann believes that Dogecoin only feeds on its fame as a meme, and most people will not seriously consider it the future of money.
In the same vein, Joel Edgerton, who is a COO at cryptocurrency exchange company biFlyer, said that Dogecoin’s practicality as a money-making solution is foggy.
Cardano: this cryptocurrency will to reach US$1
The idea that Cardano is all-or-nothing is fundamentally flawed. During the bull run in early 2021, ADA shot past a price of $1 as the rest of the cryptocurrency market went into overdrive.
By late August, the Cardano price hit $3 – that’s a 200% increase on our current ADA target of just $1.
Cardano did that without being the world’s most decentralized blockchain, and without even having smart contract capabilities. According to the latest Cardano weekly update some 91 projects have launched on the Cardano blockchain since smart contract functionality was introduced with the Alonzo hard fork in September 2021.
More than 1,000 projects are also in development on Cardano.
One of the main sources of FUD for Cardano is that the blockchain platform has a very low total value locked (TVL) compared to blockchain platform rivals like Ethereum, the BNB Chain, and Tron – the FUD says that Cardano needs to beat the TVL of these rivals or it has no chance of success.
According to DeFi Llama, Cardano’s TVL is $270 million. This puts Cardano in 29th position with Ethereum in the top spot with $54.7 billion TVL, BNB in second with $6.6 billion TVL, and Tron in third place with $5.92 billion.
But as Cardano founder Charles Hoskinson pointed out in May, DeFi Llama does not factor in Cardano taking over TVL. This is because you do not need to lock your ADA tokens away to stake them – instead, you use one of the dedicated Cardano wallets like Daedalus.
Cardano has one of the highest percentages of total supply staked in this way with 73% of all ADA in an unlocked staking pool. Factoring this in would give Cardano a TVL of $14 billion today – i.e., putting Cardano in the second spot above BNB and all its other rivals.
If we consider that Cardano actually has the second-highest TVL of all blockchains in crypto, its 8th position in the crypto market cap rankings starts to make more sense.
Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.