A popular crypto analyst pointed out that Ethereum (ETH) will switch to a proof-of-stake (PoS) consensus mechanism. For investors trying to hedge against the volatility that may be experienced in this transition, he thinks that altcoin Cardano (ADA) will outperform Bitcoin. Here are the details…
Coin Burea highlights popular altcoin ADA
In a new video update, Coin Bureau’s host tells his 2.1 million YouTube subscribers that he sees ETH rivals as protection against Merge if the update doesn’t go as smoothly as planned. The analyst uses the following statements:
If something goes wrong with the Ethereum merge, one of the ways to personally protect yourself is to add coins from competing smart contract projects to part of the portfolio. This includes Cardano’s ADA.
According to the analyst, Cardano itself also expects the Vasil hard fork upgrade in September. Therefore, ADA acts as a hedge against Ethereum Merge. The analyst adds the following:
It would undoubtedly be a strategic move if Cardano improved its scalability during Ethereum’s transition to proof-of-stake. This is because it puts Cardano in an excellent position to win users and investors in case the merge fails or does not meet the expectations of ETH holders.
Coin Bureau expects earnings on Cardano
The analyst says Cardano appears poised to see gains against the biggest crypto by market cap. According to the analyst, ADA seems lagging to gain a value against BTC on the weekly chart. “This is because ADA has historically fallen against ETH for about eight weeks before seeing a multi-week rally,” he adds. “As you can see, ADA has been falling against ETH for about eight weeks and is showing signs of a reversal,” the analyst says. The analyst then predicts that Cardano could see a 50 percent increase in price. Coin Bureau uses the following phrases:
Note that [devaluation against BTC] does not imply a higher price for ADA in fiat currency, but does indicate that ADA’s daily and weekly price action in fiat currency could see a 50 percent gain in the coming weeks. However, I must stress that this ultimately depends on whether the crypto market will see a short-term recovery. Also note that Cardano’s Vasil hard fork will expose the project to the same kinds of issues that Ethereum might experience during upgrade. This is probably why other Ethereum competitors like Solana seem to be on the verge of a bigger breakout against both ETH and USD.
At the time of writing, Bitcoin is changing hands at $19,913, down 1.8 percent. Ethereum is changing hands at $1,545, down 2.6 percent. ADA, on the other hand, is at $0.44, down 2.3 percent. As we have reported as Kriptokoin.com, the general market was negatively affected by the speech of FED Chairman Jerome Powell last Friday.
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