While Ethereum (ETH) continues to create issues for small investors with fees skyrocketing, Cardano (ADA) addresses continue to grow, showing that there is a clear interest in this crypto asset. This information was released by CryptoCompare in its most recent market report for April. In this report, they shared information about Bitcoin, Ethereum, Cardano and the whole cryptocurrency market.
Users Move to Cardano as Ethereum Fees Remain High
Ethereum fees remain quite high. Indeed, as reported by crypto compare, the fees of this blockchain network have jumped to 21% in April. This is a clear thing as the average transaction fee for the Ethereum network surged to almost $200 according to Bitinfocharts. This is definitely something that has made it impossible for small users to use the Ethereum network.
The Ethereum network includes decentralized finance (DeFi) projects, non-fungible tokens (NFTs), and many other smart contracts that require the user to pay a gas fee. It is also worth pointing out that transaction fees on the Ethereum network are now larger than on Bitcoin, and they have been in this way since early 2021 with the expansion of a large number of DeFi projects.
Another thing to take into consideration is the fact that Cardano addresses continue to grow. This is also something that has an impact on the cryptocurrency market. Why? Because it might be just the beginning of a growing trend of users moving from the Ethereum network to Cardano in order to have better solutions and services.
This could be something similar to what happened with Ethereum and Binance Coin (BNB) in early 2021 with the growth of DeFi projects such as PancakeSwap on top of the Binance Smart Chain (BSC). The better the solutions offered by Cardano, the higher the possibilities are that Ethereum users would move to this blockchain network to search for better alternatives.
According to CryptoCompare’s April report, there has been a growth of 2.99% in the number of ADA addresses. Now, there are 5.2 million addresses that hold ADA. Let’s not forget that Cardano has been promoted as a cryptocurrency that is able to offer fast transactions with low fees and that aims to solve the current congestion problems faced by other blockchain networks.
This increase in ADA addresses comes at a time in which Bitcoin has fallen below $36,000 and that could continue to move lower. Usually, when the market moves lower, activity on blockchain networks also falls. Therefore, we should pay close attention to the coming months and how this could affect not only Bitcoin but also Cardano and Ethereum.
At the time of writing, Ethereum has a price per coin of $2,666 and a market valuation of $321 billion. Cardano, instead, has a price per ADA of $0.77 and a market capitalization of $26 billion. Bitcoin remains the leader with a market cap of over $680 billion.