A popular crypto analyst says smart contract platform Cardano (ADA) is set to outperform Bitcoin (BTC) in the near term as traders seek to hedge against Ethereum (ETH)’s upcoming transition to proof-of-stake.
In a new video update, Coin Bureau host tells his 2.1 million YouTube subscribers that he sees ETH competitors as hedges against The Merge in case the update doesn’t go through. would not go as well as expected.
“One of the ways that I have personally protected myself against something going wrong with the Ethereum merger is by holding competing smart contract cryptocurrencies as part of my portfolio, and that includes the ADA of Cardano.”
According to Guy, ADA works as a hedge against the Ethereum merger, as Cardano itself also needs to be upgraded for Vasil’s hard fork upgrade in September.
“It would certainly be a strategic move if Cardano improved its scalability as Ethereum transitions to proof-of-stake. Indeed, this would put Cardano in an ideal position to acquire users and investors should The Merge fail or simply not meet the expectations of ETH holders.
Guy says Cardano looks set to see gains against the top digital asset by market capitalization.
“ADA appears to be overdue for appreciation against BTC on the weekly chart. Indeed, ADA historically fell against ETH for about eight weeks before seeing a multi-week rally. As you can see, ADA is falling against ETH for about eight weeks and shows signs of reversal.
The host then speculates that Cardano could see a 50% price gain.
“Note that [appreciating against BTC] doesn’t necessarily translate to a higher price for ADA in fiat terms, but daily and weekly price action for ADA in fiat terms suggests it could see a 50% gain in the coming weeks.
But I must point out that it ultimately depends on whether the crypto market experiences a recovery in the short term. I should also note that Cardano’s Vasil hard fork will expose the project to the same kinds of issues that Ethereum might encounter when upgrading.
This is likely why other Ethereum competitors such as Solana appear to be on the verge of a bigger breakout against ETH and USD.
ADA is changing hands for $0.452 at the time of writing, a gain of 1.5% on the day.
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