Introduction
Crypto influencer Dan Gambardello, founder of Crypto Capital Venture, recently shared his insights on Cardano (ADA) in a comprehensive video. He explored Cardano’s market position, and technological advancements, and drew several comparisons with Ethereum, highlighting why he believes Cardano is a strong contender in the crypto space.
Cardano’s Market Position
Gambardello starts by emphasizing that Cardano remains a top-five cryptocurrency, even amidst market volatility. He notes that Cardano is “ready to go” for the next bull cycle, maintaining its market position despite bearish sentiment.
Cardano and Ethereum: Market Cycles
Gambardello draws a parallel between the market cycles of Cardano and Ethereum. He points out that both cryptocurrencies had similar first bull markets, with Ethereum reaching a $125 billion market cap and Cardano close behind at $93 billion. Both also experienced significant drops in their bear markets, with Ethereum falling around 94% and Cardano around 91%.
Technological Advancements: Cardano vs. Ethereum
Gambardello argues that Cardano is not “late to the party” in terms of technological advancements. He cites the launch of Alonzo smart contracts and the emergence of DeFi platforms like Sunday Swap as evidence that Cardano is on a similar but potentially more advanced technological path compared to Ethereum.
Total Value Locked (TVL) and Staking
Discussing the concept of Total Value Locked (TVL), Gambardello suggests that if staked ADA were considered in Cardano’s TVL, it would rank much higher. He argues that Cardano’s innovative staking mechanism, which allows ADA to remain in the user’s wallet, should be considered an asset and included in TVL calculations.
Market Cap Projections
Gambardello speculates that even if Cardano doesn’t reach Ethereum’s $546 billion market cap, a more conservative estimate of $350 billion would still result in a $10 ADA. He clarifies that this is not a price prediction but a starting point for discussion.
DeFi and Total Value Locked
Gambardello highlights that Ethereum had almost no total value locked (TVL) back in November 2018, just after its first bull market. In contrast, Cardano already has around a million dollars in TVL as of January 2022, thanks to the launch of DeFi platforms like Sunday Swap. He argues that this demonstrates Cardano’s potential to catch up with or even surpass Ethereum in the future.
The Importance of Staking in TVL
Gambardello questions why staked ADA is not considered in Cardano’s TVL. He argues that Cardano’s staking mechanism is innovative and should be included in TVL calculations. He cites a tweet stating that if staked ADA were considered, Cardano would be second in terms of TVL with $5.5 billion.
Conclusion
Gambardello believes that Cardano is a strong contender in the crypto space for various reasons, including its technological advancements and market resilience. While acknowledging that Cardano has its flaws, he emphasizes that it is doing a great job in terms of security, decentralization, and scalability. He encourages viewers to share their thoughts and subscribe to his channel for more insights.
Featured Image via Unsplash
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