Which Altcoin Has More Potential to Reach $1 First?
Check out what could make altcoins go back to $1 and which one could be first to reach that value
XRP and Cardano (ADA) are two alternative cryptocurrencies that possess distinct fundamental characteristics. Despite their differences in market capitalization and total supply, these two altcoins share some similarities, such as a dedicated community and the aspiration that their holders will experience a resurgence in the value of altcoins to reach $1.
XRP, developed by Ripple, is a digital token created to be used as a medium of exchange in facilitating global value transfers and enhancing the efficiency of international payments. This is achieved by making them faster and more affordable.
Alternatively, Cardano is an open-source cryptocurrency that aims to provide a solid foundation for building decentralized applications that are scalable, secure and driven by a proof-of-stake consensus mechanism. It boasts a layered architecture, which enables the separation of the data layer and the smart contract layer, providing a unique and innovative approach to blockchain technology.
What to expect for XRP in 2023?
The XRP community is eagerly awaiting the outcome of the legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) that has been ongoing since 2020. The SEC has accused the company of unlawfully selling XRP as an investment without registering it as a security and of profiting from these sales, along with its executives.
Ripple insists that XRP is a digital currency and not a security. The case is still ongoing, with no final decision made yet. However, there is a high level of anticipation that the lawsuit will reach a conclusion this year and that the SEC’s analysis will provide greater clarity on what constitutes a security.
Some investors believe in a Ripple victory or even an agreement between the parties. This outcome would be crucial for XRP’s ability to maintain its position among the top 10 cryptocurrencies and potentially be relisted on Coinbase. The return to the platform led by Brian Armstrong could also serve as a positive catalyst for XRP’s price, as the exchange has a history of successfully driving up the value of listed cryptocurrencies.
What to expect for Cardano in 2023?
Ethereum’s main competitor, Cardano, has faced challenges in improving its user experience and identifying the true demand for its ecosystem on the market. Despite having a dedicated community and a large number of active developers, the usage of the Cardano ecosystem remains low.
If market demand for Cardano’s ecosystem materializes, the platform has the potential to perform well due to its robust ecosystem, decentralized architecture and strong scalability. These strengths position Cardano well to capitalize on any positive developments within its network.
Cardano has been implementing a number of new features, including stablecoins, decentralized oracles, sidechains and dApps optimized for EUTxO, with the aim of positioning itself as a strong competitor to Ethereum. By doing so, it aims to increase demand and usability compared to other cryptocurrencies, such as Solana.
Battle of $1
As of the current date, XRP is trading at $0.39, while ADA is trading at $0.33. While the price difference between the two altcoins is relatively small, there is a notable difference in their capitalization.
XRP’s capitalization has remained relatively stable since the beginning of 2023, despite experiencing a 15% increase. However, this growth has been slower compared to other cryptocurrencies in the top 10. Conversely, ADA has seen a significant 33% increase in capitalization since the start of the year.
The current trend of investor sentiment and capitalization growth suggests that Cardano may have an advantage over XRP, assuming that the latter’s performance continues to be heavily influenced by the outcome of the SEC’s decision. However, it is important to note that the cryptocurrency market is highly volatile, and conditions can change rapidly.
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