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Wednesday, November 30, 2022

Is This Crypto A Serious Contender To Ethereum’s Dominance?

Photo by Quantitatives.io on Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

The cryptocurrency market has arguably matured. Though a lot of hype and meme-culture remains like Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk moving Dogecoin’s (DOGE) price with a tweet, increasingly sophisticated money has flooded the market. 

UBS Group AG (NYSE:UBS) and Citigroup Inc. (NYSE:C) have major Bitcoin (CRYPTO: BTC) holdings. According to Bloomberg, more than $17 billion of institutional capital was invested last year. A survey by Nickel Digital Asset Management Ltd. showed 82% of those investors are looking to increase their exposure in the next 2 years.

A major driver of this growth has been decentralized finance (DeFi). This revolutionary market relies on the transformative power of smart-contract technology, popularized by the second most dominant cryptocurrency, Ethereum (ETH).

Ethereum’s smart-contracts, self-executing programs coded into the blockchain, have exploded the use case of cryptocurrency from the simple exchange of value to a massive number of possibilities. 

Unfortunately, a number of problems in the technology has undermined its potential thus far. Ethereum is expensive. Some transactions on the blockchain can cost hundreds of dollars. It is also slow, with limited throughput. And currently it relies on proof of work, a notoriously energy-intensive consensus mechanism.

Is There a New Crypto Boss in Town?

Many networks have been introduced in recent years to compete with Ethereum like Solana (SOL) and Polkadot (DOT), challenging its dominance. Cardano (ADA), created by a co-founder of Ethereum, is reportedly one of Ethereum’s strongest competitors.

Introduced in 2017, Cardano is among the list of the most popular cryptocurrencies around with a market cap of over $46 billion at time of writing. It aims to solve some of the issues inherent in Ethereum. As it stands, Cardano has a tps (transaction per second) of 257, whereas Ethereum has a tps of just 30. It uses a proof-of-stake consensus that is significantly less energy-intensive than proof of work. And transactions on the network cost significantly less.

For some traders looking at Cardano, derivatives like options and futures have reportedly become more popular and utilized. One type of derivative is the contract for difference (CFD). CFDs are not tradable within the United States, but for those in other countries, a CFD is a contract between a buyer and seller in which the buyer must pay the seller the difference between the current price of an asset and the price when the contract is settled. One of the advantages of trading crypto as a CFD is they allow traders to profit without actually owning the cryptocurrency, lowering the barrier to entry or potentially magnifying the impact of an investment.

Axi.com is one example of a leading platform for traders to leverage the power of CFDs and other derivatives. For those looking to invest in Cardano using these powerful tools, Axi may be a great option.

If you’re interested in learning more about trading with Axi, check them out here.

The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

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