Cardano and Dogecoin are among the topmost cryptocurrencies trading at a market cap of over $109 billion. It can be unclear which one has the better outlook moving forward. This article will look at the main differences between Dogecoin and Cardano in implementation, investment, and prospects.
Cardano vs. Dogecoin: Background
Cardano was created in 2017 by Ethereum co-founder Charles Hoskinson. Its value proposition was the first-ever eco-friendly peer-reviewed blockchain cryptocurrency centered around Ouroboros. This is a proof-of-stake protocol as opposed to proof-of-work used by previously invented cryptocurrencies. Its claim to greater energy efficiency spiraled its value to the fourth-largest cryptocurrency by market capitalization.
On the other hand, Billy Markus and Jackson Palmer created Dogecoin as a parody of traditional cryptocurrencies in 2013. It runs on blockchain technology and is the first-ever crypto meme-coin. Though initially created to make fun of bitcoin, it quickly became the seventh-largest cryptocurrency by market capitalization.
Cardano’s constant upgrades and two-layer architecture provide fast network speeds of more than 250 transactions per second (TPS). This is far higher than competing cryptos like bitcoin at 4.6 TPS and Ethereum at roughly 30 TPS. Faster network speeds allow for top-tier projects and complex processes that further boost market value.
However, Dogecoin processes around 30 transactions per second. Though not as fast as Cardano, it competes favorably with first-generation cryptocurrencies. For instance, it confirms blocks every 1 minute compared to bitcoin, which confirms blocks every 10 minutes.
Supply and Demand
Cardano has a market cap of 65 billion with a circulating supply of 32 billion. Thus, it is less likely for there to be a scarcity of Cardano any time soon. Demand can be speculated to increase as buyers look to evade the high gas fees and network congestion of Ethereum.
On the other hand, Dogecoin has an infinite market cap with a circulating supply of 131 billion. It can increase to exactly 5 billion tokens per year. Influencers have mainly propelled its demand on Twitter and Reddit. Its inflationary supply makes it ideal for usage as a form of payment with a long-term supply that increases at a steady rate.
Cardano vs. Dogecoin Market Trends
At the time of writing, the price of Cardano is $2.1, while the price of Dogecoin is $0.20 per token. Both cryptocurrencies are highly volatile, depending on the number of people adopting their usage.
While Cardano’s technical particulars mainly fuel its price gains, Dogecoin has gains popularity mostly from its cultural appeal.
Cardano reached its all-time high of $2.45 in May 2021 as a wave of investor confidence in its potential to support DeFi (Decentralized finance) projects. On the other hand, Dogecoin reached its all-time high of $0.73 in May 2021, following media crowdsourcing hypes on Twitter and Reddit.
Which is Better? Cardano or Dogecoin
Both cryptocurrencies have the potential for massive gains. Depending on the angle of analysis, Cardano is a better option in implementing smart contracts and DeFi projects. Its advancement in implementation and energy efficiency makes it solid. However, Dogecoin performs peer-to-peer payments effectively. It has a more significant social media presence that highly impacts its market value.