As gas fees soar, Cardano taps Hydra to undercut Ethereum
Crypto markets are currently at a stage where a network’s weakness may allow another to thrive. The competition between Ethereum and Cardano, where the latter is eroding Ethereum’s user base, is a prime example.
Due to the rising Ethereum gas fees, Cardano is one of the top blockchain networks at the moment. Due to one key weapon in its arsenal, investors are reportedly switching to Cardano, which is a more cost-efficient network. As a result of Cardano’s Hydra upgrade, the network has become more scalable.
The fees collected on both networks are compared below. Ethereum fees have been increasing at an alarming rate in recent days. This growth has been attributed in part to increasing network congestion caused by the meme-coin frenzy.
Meanwhile, Cardano fees paled in comparison to those of Ethereum. While Ethereum fees recently reached a high of $35 million, Cardano fees have risen to a little more than $13,000 per transaction.
To be sure, the number of Cardano users was far lower than that of Ethereum. Nonetheless, the fee increase on Ethereum remains a significant disadvantage in terms of fees, hence the growing preference for Cardano.
Let’s take a look at some other factors that support Cardano’s growing popularity. Its daily active addresses have increased in the last seven days, indicating increased network activity. Its social dominance indicator saw a rise in interest, particularly on May 9, the same day that Ethereum gas fees peaked.
Despite improved hopes, ADA bears dominate
For the last two days, ADA has been favoring the bears. After failing to establish enough bullish momentum to support a pivot, it has been sliding below a rising support line. As a result, the swelling surge of adoption hasn’t been strong enough to protect ADA from the bears.
Will the selling pressure be maintained? The ADA Money Flow Index (MFI) has reversed to the downside in recent days, but as of press time, it was resting at midway, where it was likely to pivot. Nonetheless, supply distribution revealed varied activity among the top addresses.
Whales worth watching in the 10 million to 100 million brackets generated the majority of the selling pressure. The same whale category has bottomed off in recent days, signaling that the bulls may have a chance to redeem themselves.
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