The CoinShares’ Digital Asset Monthly Fund Manager Survey has revealed that investors are increasing their digital asset allocations to Cardano, XRP, and Polkadot at the expense of Ethereum.
Investors cited speculative reasons, good value, and Distributed Ledger Technology growth as major reasons for adding the digital assets to their portfolios.
There are a number of factors that could be attributed to the increased investor interest in Cardano and XRP compared to Ethereum ranging from speculation, and investor sentiment to recent developer activities across the respective blockchains.
The higher potential upside to the all-time high price for Cardano, and XRP compared to Ethereum could be the incentive for speculators to channel their asset allocations into these digital assets, albeit for the long term.
By design, Ethereum was built as an open-source platform that allowed for the building of other applications onto it. Ethereum had a first-mover advantage over other blockchains as it pioneered smart contracts. Consequently, the Ethereum platform grew rapidly over the years with an increased number of transactions. However, the platform’s scalability challenge resulted in higher gas fees, particularly during peak network periods. The lack of interoperability across blockchain platforms was another shortcoming for the Ethereum network.
Solutions to the above challenges ultimately led to the concept of the so-called “Ethereum Killer” blockchains. The competitor blockchains were soon developed to overcome the challenges faced by the Ethereum platform. These blockchains included Cardano, and Polkadot to name a few. A number of developments have taken place on these blockchains.
The Alonzo Upgrade on the Cardano Network in September 2021 provided fully functional smart contract capability, allowing the minting of NFTs (Non-Fungible Tokens) and running of several Decentralized Applications (DApps). With faster speeds and lower transaction costs, these developments have made the Cardano ecosystem a direct competitor to the Ethereum Network. It is likely that the higher transaction expenditures and scalability challenges may have contributed to investor funds flowing into Cardano at the expense of Ethereum.
According to the Electric Capital Developer Report 2021, the Polkadot ecosystem was one of the largest and rapidly growing ecosystems, with more than 250 active monthly developers. The Polkadot ecosystem was reported to be growing faster than the Ethereum Network, at the same point in history. This could have influenced the flow of investor funds into the Polkadot ecosystem in comparison to the Ethereum Network.
Ripple has been involved in an ongoing legal battle with the US Securities and Exchange Commission (SEC) since late 2020 in which the SEC claimed that Ripple conducted illegal security offering through the sale of its XRP token. The initial court rulings appear to be going in Ripple’s tide towards winning the case against the SEC. Speculators are anticipating that a Ripple win against the SEC would result in an increase in the price of XRP. Thus, bolstering investor confidence in XRP.
Should we expect to see further fund outflows from Ethereum into Cardano, Polkadot, and XRP? Well, the race to become the preferred blockchain is only heating up. Developer activity is only expected to intensify across blockchains to make them more efficient and secure.
In May 2022, the average Ethereum transfer gas fees fell to a ten-month low of below $3 per transaction. Though this was welcome news for Ethereum Network users, it remains uncertain as to how long this gas fee level will be sustained. Some crypto experts have attributed the drop in gas fees simply to the recent general slump in the crypto market resulting in a reduced number of transactions on the Ethereum network.
Vitalik Buterin, the Ethereum co-founder, revealed that the long-awaited Ethereum Merge Upgrade is set for August 2022. The upgrade would mark the shift for Ethereum from Proof of Work to a Proof of Stake consensus mechanism. The Ethereum Merge Upgrade could well be the much-needed spark required by the Ethereum Network to extend its first-mover advantage over competitor blockchains.
PrivaCrip to Power a Blockchain Network That Could Follow Cardano & XRP
When the first decentralised blockchain was popularised in 2008 by Satoshi Nakamoto, the door was open for people across the globe to transact more securely and seamlessly. Many blockchain networks have been built and powered by native crypto tokens, including PrivaCrip (PRCR).
Native tokens exist for several reasons. Aside from acting as digital currencies, they perform various functions. Helping blockchains improve data traceability, security, transparency, and trustworthiness shared throughout the network. They also assist in reducing costs through their ever-evolving efficient methods.
Cardano (ADA) and Ripple (XRP) are among the best blockchain-based cryptos that this article will discuss. We will also look at how PrivaCrip (PRCR) will power a blockchain network set to launch into the crypto space.
Top Tier Crypto Makes its Mark – Cardano (ADA)
Cardano (ADA) has been around in the crypto space since 2017. The Proof-of-Stake (PoS), Ouroborous Cardano (ADA), was established using a research-based methodology.
Research is the backbone of Cardano (ADA) and is integral to its success in the cryptocurrency market. Cardano (ADA) uses an evidence-driven mechanism and peer-reviewed research to run its ecosystem to drive its evolution.
Among many things, Cardano (ADA) helps establish DeFi products and provides a suite of financial solutions. Crypto enthusiasts can stake Cardano (ADA) for a chance to earn rewards for their holdings.
With 2022 providing challenges in cryptocurrencies across the globe, Cardano (ADA) is one of the few cryptos to see a surge in on-chain trading volume this year. CoinMarketCap lists Cardano (ADA) as the 7th largest crypto by market capitalization at the time of writing.
Making Waves – Ripple (XRP)
Launched in 2012, Ripple (XRP) is a leading provider of crypto solutions for businesses. Ripple (XRP) provides developers with a solid open-source foundation for executing demanding projects. It is fast, energy-efficient, cost-effective, and reliable.
The solutions provided by Ripple (XRP) enable developers to solve inefficiencies, including asset tokenization and remittance. Therefore, individuals and businesses may apply Ripple (XRP) for DeFi, payments, tokenization, and more.
Crypto enthusiasts with a long-term focus may find Ripple (XRP) a valuable investing tool. Token holders can use Ripple (XRP) for staking its mainnet platform for a chance to grow their earnings and maximise profit.
The New Face Of Privacy – PrivaCrip (PRCR)
The soon-to-launch PrivaCrip (PRCR) is a cryptocurrency built for Web3 data privacy. It will allow users to develop and use permissionless and privacy-preserving applications. This unique feature of PrivaCrip (PRCR) secures apps, protects users, and fosters the creation of many new Web3 uses.
PrivaCrip (PRCR) will drive a blockchain that creates a more empowering and inclusive internet. It will enable developers to build secure dApps using private contracts based on original privacy research (OPR) to revolutionise Web3.
PrivaCrip (PRCR) will begin pre-sale soon and has an initial token price of 0.10 USD. According to the whitepaper, there will be a total supply of 190 million tokens, of which 40% of the total supply will go to the pre-sale.
Crypto enthusiasts who purchase PrivaCrip (PRCR) during the pre-sale will receive the most significant long-term rewards and bonuses. Those who buy with Bitcoin (BTC) will receive a 10% bonus. Also, those using Ethereum (ETH) to purchase will receive 15% of the total PrivaCrip (PRCR) they purchase as a bonus.
10% of PrivaCrip’s (PRCR) total supply is up for distribution as staking rewards, meaning that token holders who stake will receive rewards for their contribution to the crypto’s advancement.
Blockchain networks are continuously evolving, and so are the crypto tokens that power them. Cardano (ADA) and Ripple (XRP) have contributed tremendously to the success of their blockchain networks, gathering mass appeal.
PrivaCrip (PRCR), for its part, will drive a security-enabled blockchain and scalability in private DeFi, empower data tokenization, and bring together a fast-growing community. Acting on its promise, it has the potential to become the next big mover in cryptocurrency.
For more on PrivaCrip (PRCR), check below:
Cardano (ADA) Withdrawal Fees Waved by Bitrue Exchange
Singapore-based cryptocurrency exchange made Cardano one of its base trading pairs earlier this year
Singapore-based cryptocurrency exchange Bitrue announced that it had temporarily waived withdrawal fees for the Cardano (ADA) cryptocurrency.
The trading platform says that the move is meant to celebrate the support it received from the community behind the cryptocurrency.
Users will be able to withdraw ADA without paying any fees until mid-September.
Bitrue has stressed that it wants users to have “as much choice as possible” when it comes to custody options. Those who want to hold their ADA tokens will not be able to do so without paying an additional commission.
At the same time, Bitrue has touted its “Power Piggy” yield-farm investment program for those who want to earn passive income with ADA.
As reported by U.Today, Bitrue introduced the token as its base currency back in February.
In June 2021, it also became the first cryptocurrency trading platform to add support for Cardano-based native tokens.
Last month, Bitrue also announced a staking initiative with the ADA cryptocurrency. It decided to contribute a million tokens to some of the top Cardano staking pools in an effort to boost the level of decentralization.
Earlier this year, SundaeSwap (SUNDAE), the native token of the SundaeSwap exchange, also became available on Bitrue.
WingRiders Losses 59% Of Its Total Value Locked, Plunges Cardano TVL Below $100M
Popular Cardano-based decentralized exchange WingRiders has lost its position as the most valuable DEX on Cardano.
WingRiders slumped from the first position to third after losing more than 59% of the total value locked (TVL) on the platform in the past 30 days.
At the time of writing this line, WingRiders is now the third-largest DEX by total value locked, with a TVL of $19.66 million. It is noteworthy that WingRiders maintained the top spot for more than two months, claiming 42% of TVL On Cardano. However, the DEX has fallen from glory ever since.
Minswap Is Now Cardano’s Most Valuable DEX
The development also affected the total value locked on Cardano. The total value locked on Cardano has fallen below $100 million in the last 30 days after the WingRiders TVL slumped.
Interestingly, Minswap has taken the lead to become the most valuable decentralized exchange on Cardano after the massive decline of WingRiders’ TVL.
At press time, Minswap is leading, with a $49.09 million total value locked on the platform. The DEX hit the milestone after recording a massive growth of 30.9% in its TVL in the past 30 days. Minswap accounts for 51.82% of the total value locked on Cardano.
SundaeSwap, the first decentralized exchange on Cardano, is now the second most valuable DEX in the ecosystem. SundaeSwap is second in the ranking, with $19.72 million in TVL.
Like WingRiders, SundaeSwap has also lost a significant amount of its TVL over the past 30 days. In the past month, SundaeSwap has lost nearly 10% of the funds locked on the platform.
Commenting on the development, Cardano Daily, a platform that shares new developments about Cardano, said:
“After the major decline of @wingriderscom, the TVL scenario of the Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem.”
CARDANO TVL STATUS
After the major decline of @wingriderscom, the TVL scenario of the @Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem#tvl #cardano $ADA pic.twitter.com/xjZ6cHo8jX
— Cardano Daily (@cardano_daily) August 9, 2022
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