Cardano vs Solana: Which Network Has Long-Term Potential?

Cardano and Solana are competitors in the market, even though they both share the same goal of being an Ethereum killer. Since it is one of the top 10 smart contracts, the competition is getting fiercer. So, does Cardano or Solana have greater growth potential?

Before getting into Cardano and Solana head-to-head, let’s take a look at their similarities. Both are proof-of-stake (POS) networks with smart contracts, just like Ethereum. Solana and Ethereum are in the early stages of adoption.

On the other hand, highlighting some key differences can provide insight into which side is currently winning the battle. One of the best ways to do this is to analyze key metrics such as Total Value Locked (TVL) and Market Cap.

Cardano and Solana: painting

SOL lead forward In front of TVL

At the time of writing, Cardano has a total pivotal value (TVL) of $151.04 million. That’s significantly higher than its lows in December, when it dipped below $50 million.

However, this figure is still a long way from the previous ATH of $235 million.

source: De Philama

While TVL Cardano is recovering fairly well, it is still far behind Solana’s $270.21 million at press time. However, since the beginning of the year, Solana’s TVL has not rebounded like Cardano’s.

While Solana’s TVL is higher, Cardano’s TVL is growing at a significantly faster rate. The market capitalization of these two projects has also seen a similar increase. Since early 2023, Cardano’s market capitalization has been higher than Solana’s.

source: Defirama

Compared to the historical ATH of $10 billion, Solana’s current TVL is much lower. This level was recorded at the peak of the bull market in November 2021.

Cardano gain the upper hand market value

From the standpoint that Cardano is probably the better choice right now, many may see a bigger TVL loss for Solana. However, this would be a biased decision. Because Cardano launched smart contract functionality in September 2021. In other words, Cardano has not had enough time to grow organically compared to Solana, let alone Solana is off to a good start.


source: Santiment

Cardano’s market cap has hovered at a low of $8.3 billion over the past six months, peaking at nearly $16 billion. The market capitalization at the time of writing hovers around $13 billion. However, Solana’s market capitalization hovered between a six-month low of just over $3.3 billion and a high of $9.9 billion over the same period. At the time of this writing, that figure was around $8.4 billion.

Cardano and Solana have almost equal numbers of active addresses. Both have seen between 43,000 and 68,000 daily active addresses over the past 24 hours.


source: Messari

Solana’s weekly transaction volume peaked at $29.84 million in early May before dropping to a low of $1.25 million.

Meanwhile, Cardano’s weekly transaction volume peaked at $11.56 million at the beginning of the month and hit a low of $630,000. This means that Solana has a higher average transaction volume than Cardano.


source: Santiment

Based on the above analysis, the battle between Cardano and Solana seems to be evenly matched. However, a higher Cardano TVL indicates a higher level of trust in the ecosystem. At the same time, volume data supports more transaction activities in the Solana ecosystem. Development activities are also fairly uniform.

get conclusion

Both networks are driving organic growth, but current market conditions have slowed them down. Despite a late start, Cardano is catching up. Solana, on the other hand, has shown resilience despite multiple trips due to network outages.

Investors looking for clear winners can struggle to make a choice. Perhaps diversifying paths should be chosen for maximum benefit.

  • The altcoin market is about to recover
  • What caused the buzz in the Cardano ecosystem?
  • Is Solana still a technological leader in Layer-1 blockchains?

Ming Ying

According to AMBCrypto

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