Solana vs Cardano, which one should you invest in? With both of these among crypto investors’ favorites, it can be difficult to choose between them. However, before you invest in any crypto, it is important to do your research.
In recent years, Solano and Cardano have caught the attention of crypto fanatics. Both of these cryptocurrencies are powerful and possess various purposes. Although these cryptocurrencies are similar, they do entail some differences.
Hence, it is essential to fully comprehend both cryptocurrencies, especially if you are interested in investing in either one or both. Thus, before investing, look at our comparison of Solana vs Cardano to make an informed and beneficial decision.
Cryptocurrency War: Solana Vs Cardano
Let’s quickly go over what Solana and Cardano are.
What Is Solana?
Solana is a cryptocurrency that utilizes a proof-of-history model of blockchain technology. It incorporates the use of timestamps to discover the upcoming block in Solana’s blockchain.
This amazing feature, combined with proof of stake, has made Solana’s capability quite extensive, and thus, transactions can be made more quickly compared to other consensus mechanisms.
What Is Cardano?
Cardano is a cryptocurrency that is a proof-of-stake blockchain technology platform. It utilizes extensive pioneering mechanisms to offer high security and sustainability.
The native cryptocurrency, called ADA, is designed to decentralize applications, societies, and systems.
Solana Vs Cardano: A Basic Comparison
Let’s look at the difference between the two.
Blockchain History And Technological Mechanism
Solana is a relatively new blockchain project launched in 2017 and established by former Qualcomm software engineer Anatoly Yakovenko. It is known to be a layer-one blockchain protocol that uses PoH (Proof of History) for its consensus mechanism.
It is formed around accepting the difference in time between two events on the blockchain. This mechanism works before the proof of stake consensus. This process increases the transactional rate of buying and selling on the blockchain network to around 50,000 transactions per second.
Plus, it has the capacity to increase up to 100,000 transactions per second. In addition, all these numerical modelings are easily achievable at the base layer of the blockchain mechanism. Hence Solana does not need layer scaling for its procedures.
Cardano is a great cryptocurrency launched by Charles Hoskinson, the co-founder of the Ethereum blockchain. It was launched to provide an environmentally conscious blockchain technology that incorporates the potential for DeFi, decentralized apps, and smart contracts. In September 2021, it published an update and created the Cardano NFT marketplace.
In addition, its consensus mechanism is based on the proof of stake. This implies that blocks are incorporated into Cardano’s blockchain mechanism in a more advanced and environmentally reliable method compared to the Bitcoin mining method, which is the proof of work mechanism.
Consequently, both of these blockchain projects are catered to by experts whose main target is to incorporate regular innovations and improvements into their blockchain mechanism.
Let’s explore Cardano NFT Marketplace and how it is different from Solana’s.
Solana Vs Cardano NFT Marketplace
Both platforms, Solana and Cardano, have launched their own NFTs. Although these NFTs are not as famous as the Ethereum blockchain NFTs, they are steadily getting popular over time.
Cardano’s NFT marketplace JPG store, which is the biggest on its platform, has recorded a volume of more than $8 million in incoming values in the month of August.
The most popular NFT collections on Cardano’s NFT marketplace include Pavia Virtual World land NFTs, Clay Nation, and Space Buds. However, Cardano’s NFT community is quite engaged but is still behind Solana’s.
Beginning with the most popular NFT magic Eden at Solana’s platform, which is in regular disagreement for the general first place, contrary to OpenSea, the largest American online non-fungible token marketplace.
Solana’s marketplace has recorded an extensive volume of $129 million in the same month. Also, the leading NFT collections on Solana’s marketplace include Solana Monkey Business, Aurora, and Ape Academy. New projects are expected to launch by the first quarter of 2023.
Solana and Cardano both authorize developers to construct decentralized applications on their blockchain platform.
Since June 2022, Cardano has provided up to 1,000 apps with its primary focus on NFTs, also known as Non-Fungible Tokens, whereas in the past, it was DeFi (decentralized finance).
On the other hand, Solana has nearly 350 apps on its marketplace. These include some leading NFTs, DeFi volume, transactions, and the number of users.
As previously discussed, Solana and Cardano both have their particular cryptocurrency. Cardano’s first coin is known as ADA. ADA had an overall market cap of around $14 billion in September 2022. It covers transnational payments and rewards those staking Cardano.
Solana’s first cryptocurrency is known as SOL. It had a total market capitalization of $12 billion in September 2022.
ADA reached its all-time high volume in September 2021 at $3.1. Meanwhile, SOL price reached a skyrocket range of up to $216.
Apart from these, cryptocurrencies are volatile and change their value quickly. Many other factors also influence this criterion, excluding the platform itself. Hence, only a financial advisor can help in deciding whether you should invest in SOL or ADA.
Solana Vs Cardano – Which One To Choose?
In the comparison of Solana vs Cardano, it is certain that both cryptocurrencies are powerful and provide multiple functional alternatives to real-world issues as well as Ethereum problems.
In addition, both cryptocurrencies work with highly advanced technological mechanisms, and their original coin values also increased in 2021.
On the basis of decentralization, Cardano is a step ahead of Solana since becoming an authenticator on Solana’s platform is quite challenging. Apart from this, one more thing to look into in the comparison of Solana and Cardano is that Solana’s blockchain network has undergone many outages nearly seven times since its advent, which made its users wait long periods to complete their transactions.
Though Cardano is keen on launching other projects for the utilization of blockchain technology in the world, the major steps taken for this purpose are, however, quite a few. Besides, the primary aim of both platforms is very good, but the rate at which they are progressing leaves more room to desire.
Solana vs Cardano comparison must be determined by focusing on two major factors. For instance, if you are keen on investing in DeFi, NFTs, and p2e apps, the Solana blockchain network is the best choice.
Whereas, if you are likely to invest in the supply chain, storing credentials, and usage of blockchain in management procedures, Cardano might be the perfect choice for you.
Both Solano and Cardano have major advantages in terms of certain features. Solana is a smart blockchain marketplace for its outstanding PoH protocol and its position in the NFT market.
In contrast, Cardano stands out for its unique and strong decentralization, real-world uses, and long history. Hence when deciding between Solana vs Cardano, it is important that you research what the two are aiming to achieve and their projects before speaking to a financial advisor.