Cardano, DOGE and XRP represent the largest projects in the altcoin market with different fundamental features. Each has its own rallying potential, but at the moment, their price has been below $1.00 for a long time. So which one is closest to breaking that threshold? In this article, let’s list the catalysts needed for fundamental analysis.
What awaits Cardano, DOGE and XRP in 2023
The XRP community is eagerly awaiting the outcome of the legal battle that has been going on since 2020 between Ripple Labs and the SEC. The SEC accused the company of illegally selling XRP as an investment without registering it as a security. But Ripple insists that XRP is a digital currency, not a security. This keeps the parties involved in the litigation process that extends until 2023.
However, there is a high expectation that the case will reach a conclusion this year. Some investors believe in a Ripple victory or even an agreement between the parties. This result is crucial for XRP to maintain its position among the top 10 cryptocurrencies and potentially be relisted on Coinbase. The return to the Brian Armstrong-led platform could act as a positive catalyst for the price of XRP, as the exchange has a history of successfully increasing the value of listed cryptocurrencies.
What to expect from Cardano in 2023?
Ethereum’s main competitor, Cardano, faced challenges in improving the user experience and determining the real demand for its ecosystem in the market. Despite having a dedicated community and a large number of active developers, the use of the Cardano ecosystem is still low.
If the high demand for Cardano’s ecosystem materializes, the platform could have the potential to perform well thanks to its robust ecosystem, decentralized architecture and strong scalability. These strengths put Cardano in a good position to capitalize on any positive developments in its network.
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To position itself as a strong competitor to Ethereum, Cardano is implementing a number of new features, including EUTxO-optimized stablecoins, decentralized oracle, sidechains, and dApps. By doing this, it aims to increase demand and availability compared to other cryptocurrencies like Solana. As you follow on Kriptokoin.com, it is preparing for a new version in February that will affect cryptographic primitives and facilitate the implementation of cross-chain initiatives.
Dogecoin and Cardano: Which is the better investment?
To possibly predict the performance of these two cryptocurrencies in the next bull market, it can be helpful to look at their previous performance. Now, in the last bull market spanning 2020-2021, both cryptos had impressive rallies, but Dogecoin had more returns.
In 2020, the price of Dogecoin dropped as low as $0.0011, but when support for billionaire Elon Musk began, it rose as high as $0.78 at one point. When calculations are made, the DOGE price has appreciated about 70,000% during this period. To put this in perspective, if $1,000 worth of DOGE were purchased at 2020 lows, you would have $700,000 at the top.
As for Cardano, it also performed incredibly well in the 2021 bull market. It was pushed forward by the anticipation surrounding the Alonzo upgrade, which saw the debut of smart contracts on the blockchain. ADA dropped as low as $0.018 at one point in 2020, then peaked at $3.10 in August 2021. This translates to approximately 17,000% returns between the floor and ceiling points.
All in all, despite Dogecoin’s impressive performance in the last bull market, it still pales in comparison to Cardano when it comes to utility. ADA’s smart contract capability that allows users to join the DeFi industry makes it one of the most useful cryptocurrencies on the market.
In this regard, Cardano wins because its services have a much higher chance of making it a success in the long run. Also, while Dogecoin has yet to see $1.00, Cardano has shown that it can do it easily in bull markets. So what does the Cardano and XRP comparison offer?
1 dollar war
As of January, XRP price is trading around $0.4 while ADA is in the $0.37 region. While the price difference between the two altcoins is relatively small, there is a notable difference in their capitalization. XRP’s capitalization has remained relatively stable since the beginning of 2023, despite experiencing a 15% increase. However, this growth has been slower compared to other top 10 cryptocurrencies.
Conversely, ADA has seen a significant 33% increase in capitalization since the start of the year. The current investor sentiment and capitalization upward trend suggest that Cardano may have an advantage over XRP, assuming that XRP’s performance continues to be heavily influenced by the outcome of the SEC’s decision. However, it is important to note that the cryptocurrency market is highly volatile and conditions can change rapidly.
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